MILAN — Trade wars, geopolitical tensions and the volatility of financial markets on a global scale are tightening purse strings across the globe, but Brunello Cucinelli continues to achieve healthy growth.
According to preliminary figures, the Solomeo, Italy-based company’s sales momentum that kicked off 2025 continued into the second quarter. Sales grew 10.2 percent to 684 million euros in the first half of the year. The positive performance prompted the company to forecast 10 percent growth for both 2025 and 2026 full-year sales and said it would likely report “slightly improved” growth in profit for the full year. That would compare to a 19.5 percent rise in profit in 2024 to 128.5 million euros.
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“As for profitability, by the end of the year, we will slightly improve our profitability. And we are very happy about that,” said Brunello Cucinelli told analysts during the first-half conference call.
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“The fact is that we have an Italian company pay taxes in Italy… this is our struggle, you know, with regard to improving the profits. We will never bring or transfer our company to the Netherlands, to Luxembourg,” Cucinelli added.
Cucinelli added that his motivation for staying in Italy is in large part to support the wider supply chain. “We are serious Italian entrepreneurs who believe in made-in-Italian manufacturing with high-end craftsmanship, high-end exclusivity, high-end quality. We want to work on a local level in Italy.”
Geographically, the firm posted buoyant sales in all key markets. Revenues generated in Asia outpaced, rising 12.5 percent in the first half to 195.7 million euros.
“In Asia, the brand is considered to be extremely fashionable. We’ve been concentrating on the relevance of the brand more than anything else. Our brand is young and even younger in Asian countries. We need to work on the depth of the brand more than anything else,” said chief executive officer Luca Lisandroni, commenting on the positive performance throughout the continent, particularly in China.
Sales in Europe grew 10 percent to 243.1 million euros while the Americas, its biggest market by sales, grew 8.7 percent to 245.2 million euros.
“The [performance in Americas] shows that negative psychological effects due to the tariffs haven’t had any negative consequences up to now,” Lisandroni added. U.S. President Trump’s tariff policy imposed on Italian goods will drive prices of Brunello Cucinelli’s products higher by 4 percent, but only in America, the company said.
Both retail and wholesale grew almost equally in the period. Retail, which represents 63.7 percent of the total, rose 10.3 percent to 435.8 million euros, while wholesale rose 10.1 percent to 248.2 million euros. Cucinelli said that wholesale and multibrand stores are still “great value” for the company and approach new customers looking to complete their total look and unique style.
“The multibrand channel closes another particularly brilliant semester, reinforcing the strategic role we have always recognized it for. We have significantly gained market share in purchases from the world’s most important multibrand clients…,” the company said, citing excellent wholesale order intake of its men’s spring 2026 collection presented in June.
Its women’s spring 2026 collection will be available in showrooms starting in August and will be presented to the press during Milan Fashion Week in September.
The company has invested significantly in doubling its production capacity by restoring an existing industrial site in Solomeo. The firm said the works would be completed in November, eight months earlier than previously expected. The new plant will “guarantee production until 2035.”
The company also plans to open new manufacturing sites in Italy, in Penne and in Gubbio, supporting the plans to double turnover, as expected by 2030.
The fashion industry across the board is grappling with rising tariffs, geopolitical tensions and the volatility of financial markets, which is negatively impacting luxury spending. As a result, the personal luxury goods segment is seeing the first slowdown in 15 years, excluding the COVID-19 pandemic, according to the spring 2025 Luxury Goods Worldwide Market study presented by Bain and Altagamma in Milan in June.
According to the report, the luxury industry registered a 1 percent decrease in 2024 turnover to 364 billion euros, compared with 369 billion euros in 2023.