Cucinelli's version: how kindness becomes solidity, even for budgets
While luxury is experiencing months of uncertainty, the Umbrian brand's excellent half-yearly report confirms the success of its proposal: concreteness and discretion, the narration of ancient values in a contemporary key, the centrality of the well-being of people and the planet
4' min read
4' min read
Rather than 'quiet' luxury, a translation of that quiet luxury that flourished especially after the end of the pandemic, Brunello Cucinelli has always preferred to define his as 'gentle' luxury. An adjective that recurs frequently in his personal vocabulary, on which he has modelled his idea of company and product. That together with calm, as the saying goes, kindness is a virtue of the strong, is also confirmed by the recent accounts of the Umbrian company, which closed the first half of 2024 with revenues up 14.1% and net profits up 31% compared to the same period in 2023. Very rare percentages for the large global luxury groups, whose sales are plagued by international tensions, geopolitical uncertainties, and the slowdown of the Chinese market, once flourishing and crucial to every balance sheet.
Let us review the percentages of the half-yearly results of the other 'bigs': +2% for Lvmh, Zegna +6.3%. There were also double-digit percentage increases, such as the +17% of the Prada Group (the top Italian group, with profits at +25.57%), the +11% of Moncler, the +12% of Hermès. But above all, declines: the most striking, the -11% of Kering, but also the -12.8% of Ferragamo. There were also negative signals for Capri Holdings (which includes Versace, Jimmy Choo and Michael Kors), which closed the first quarter of its fiscal year 2025 (ended 29 June) with total sales of $1.07 billion, down 13.2% year-on-year. Thud a few days ago for the Lanvin group (which controls Lanvin, St. John, Caruso, Wolford and Sergio Rossi) at -20%.
Why is Cucinelli weathering this latest storm in luxury so well? "The style for now is very much appreciated and we are very positive about the months to come," said Cucinelli himself, who is both president and creative director of the fashion house of the same name, during the presentation of the half-yearly financial report. A style as coherent as his narrative, which refers to values that could be defined as 'ancient', but without crystallising them, on the contrary, modelling them as answers for contemporaneity, especially in times of uncertainties and anxieties for the future. Thus, the centrality of the person and his or her skills, respect for the planet and its resources and the link between these two dimensions become avant-garde. This gives rise to the 'Cucinelli style', where a certain concreteness - almost earthy, very Umbrian - is never banal, where the versatility and comfort of dressing are enhanced by materials and workmanship. Those who buy Cucinelli are the holders of the so-called old money, but also the conscious among the younger rich, united by a certain indifference to the 'show off' and the succession of trends dictated by marketing. Perhaps a niche community, but a solid one. And one that is driving the brand towards 10% growth in 2025 and doubling its turnover by 2030.
Returning to the accounts: Ebitda was EUR 177.8 million, up 14.8%, with a stable margin of 28.6% compared to 28.5% last year. Worldwide there are 126 single-brand retail boutiques and the brand is present in 49 hard shops in Luxury Department Stores. Capital expenditure increased to EUR 44.8 million (from EUR 34.9 million in H1 2023), but so did debt, which rose from EUR 38.6 million to EUR 68.7 million, with the major investment plan and the payment of dividends totalling EUR 66.1 million. Personnel costs also increased, amounting to EUR 113.2 million (+21.3%), with an incidence of 18.2% compared to 17.2% last year. The subject of fair pay is one of the most cherished for the Solomeo entrepreneur: in February 2023 he announced his intention toraise workers' salaries by 20%, explaining that 'the value of this decision, and I use the word value instead of cost on purpose, can reach one point of ebitda. I would say that we can afford it and indeed be proud to use profitability margins in this way'.
If hands are at the centre of Cucinelli's project, and success, for the company this does not mean closing the door to new technologies, artificial intelligence in the first place: last July, after three years of work, the company's new site was presented, built precisely with artificial intelligence. "We imagined a site without pages," commented Cucinelli, "in which the contents flow and combine in front of the visitor, thanks to a technology that tries to understand and follow the intent of the users, drawing what they see in the footprint. We have given this technology the name Solomei AI. We feel that this new site is very special indeed, not least because of the comments we have received from our friends in the AI world.
