Brunello Cucinelli expects store closures to hit Q2 sales

Brunello Cucinelli S.p.A. has reported net sales of 156.7 million euros (169.8 million dollars) in the first quarter, down 2.3 percent at current exchange rates and down 2.9 percent at constant exchange. The company said, economic and financial impact of the Covid-19 pandemic is expected mainly in the second quarter, with sales significantly affected by the additional closure of a significant number of boutiques around the world.

Commenting on the results, Brunello Cucinelli, the company’s Chairman and CEO, said in a statement: “The current year was off to a very, very good start from an economic and brand-image point of view, until 29 February, the only exception being China due to the Covid-19 epidemic. The economic and financial impact of the pandemic is expected mainly in the second quarter, with sales significantly affected by the closure of a still significant number of boutiques around the world. Great attention is devoted to the planning of the two-year period 2021-2022 for which we envisage a buoyant and sizeable recovery of the business, allowing us to continue to work for our ten-year plan 2019 - 2028, which should lead us to double our turnover.”

Brunello Cucinelli’s performance across key geographies

In the Italian market, the company’s revenues reached 24.4 million euros (26.4 million dollars), 15.6 percent of the total, which were down 13.9 percent. Sales in the European market, equal to 51 million euros (55.3 million dollars), 32.5 percent of the total, were down 2.2 percent in the quarter under review. North American market revenues of 50.8 million euros (55 million dollars) 32.4 percent of total, saw an uplift of 9.5 percent.

Turnover in China, equal to 11.2 million euros (12.1 million dollars) 7.2 percent of the total, declined 27.2 percent impacted by the developments related to the Coronavirus emergency. Rest of the World sales equal to 19.3 million euros (20.9 million dollars), 12.3 percent of the total, were up 6.6 percent.

The company said that retail monobrand channel revenues of 65.9 million euros (71.4 million dollars), 42.1 percent of the total, declined by 7.4 percent. As of March 31, 2020 the store network amounted to 107 boutiques; the new New York boutique in the Meatpacking District was opened in the first quarter 2020. Wholesale monobrand channel sales of 11.2 million euros (12.1 million dollars), 7.1 percent of the total, saw increase of 0.5 percent. The network includes 30 boutiques. Wholesale multibrand channel turnover of 79.7 million euros (86.4 million dollars), 50.8 percent of the total, was positive 2 percent.

Picture:Brunello Cucinelli website