Brunello Cucinelli, an Italian luxury fashion brand, has reported 10.5 per cent revenue loss to €544.0 million in the fiscal 2020 ended on December 31, 2020 compared to the sales of €607.8 million in the previous fiscal. The company incurred a net loss of €32.0 million during the year compared to the net income of €53.0 million in FY19.
“We have just ended the year 2020, which will be a topic for discussion for generations to come, and which will stick to our memory as a painful time for the body and soul, but also as a time of great change for the benefit of humanity and creation as a whole,” Brunello Cucinelli, executive chairman and creative director of the company, said in a press release.
The company’s operating loss during FY20 was €14.8 million (FY19: income €83.4 million). EBITDA slipped to €89.5 million (€169.6 million).
Revenues in Italy fell 23.8 per cent to €68.3 million (€89.7 million), and lack of tourists in the region was partially compensated by the stability of specialty stores in the suburbs. Europe revenues were marginally down 1.8 per cent to €181.5 million (€184.8 million). Although, North American market returned to growth in the second half of the year, with revenues for FY20 declined 15.4 per cent to €172.8 million (€204.1 million). Mainland China reported a positive result for the whole year, with a sharp acceleration in second half with sales of €61.7 million (€62.9 million). While revenues in rest of the world decreased 9.9 per cent to €59.7 million (€66.3 million).
Revenues by distribution channel saw 20.8 per cent fall in retail to €268.8 million (€339.4 million). Online boutique of the brand saw a significant increase in sales during the reported year, doubling their impact on overall sales in FY20 and amounting to 5 per cent of the total. Whereas wholesale revenues grew 2.6 per cent to €275.2 million (€268.3 million).
“These days I feel very strongly that in a few months we will be able to return to our normal quality of life. With this conviction, and thanks to the significant quantity of orders in our order portfolio from the Fall Winter 2021 collections, which have been unanimously found beautiful by both customers and the specialised press worldwide, we are guiding for this "year of rebalancing" with a significant growth in turnover of between 15-20 per cent; and as for 2022, we envisage – as per our ten-year plan for 2019 -2028 – a growth of around 10 per cent,” Cucinelli said.
Fibre2Fashion News Desk (JL)
Brunello Cucinelli, an Italian luxury fashion brand, has reported 10.5 per cent revenue loss to €544.0 million in the fiscal 2020 ended on December 31, 2020 compared to the sales of €607.8 million in the previous fiscal. The company incurred a net loss of €32.0 million during the year compared to the net income of €53.0 million in FY19.