Brunello Cucinelli Q1 Revenue Rises 14%, Lifted By Robust Performance in the US

Brunello Cucinelli’s first-quarter revenue at constant exchange rates rose 14 percent, led by the US market, offering an early indication that demand at the top end of the luxury market has so far held up despite an uncertain sector recovery and the outbreak of war in the Middle East.

For the quarter ended March 31, revenue rose to €369.1 million ($432.4 million), the company said on Thursday. Growth accelerated following a 12 percent increase year-on-year in the fourth quarter of last year and the company confirmed its full-year revenue target of 10 percent growth.

While Cucinelli is not considered a bellwether – given both its positioning at the top of the luxury price pyramid and its relatively small size compared with groups like LVMH and Kering – its results offer an early indication of how high-end fashion demand is holding up amid geopolitical disruption.

It offers reassurance ahead of upcoming sales reports from LVMH, Kering and Hermès next week.

The results came despite the now six-week conflict in the Middle East, which has weighed on luxury demand in the region and fuelled broader concerns that higher inflation and weaker economic growth could curb global luxury consumption. The war began on Feb. 28, meaning the first-quarter figures include roughly one month of disruption. Cucinelli said that its performance in March mirrored the first two months of the year.

Cucinelli issued its around 10 percent growth forecast for this year in December, an outlook it reaffirmed in mid-January and again on Thursday when it boosted its 2027 outlook to 10 percent from about 7.5 percent.

The Middle East accounts for 5 percent of group revenue, the company said. Its retail footprint in the region is also relatively limited, with nine stores, compared with 13 for Prada and around 20 each for Gucci and Dior, according to Bernstein. For the industry as a whole, the Middle East typically accounts for about 5 percent of revenue, according to analysts, with higher exposure among hard-luxury players such as jewellery makers.

With a two-week ceasefire having just begun, the fashion industry is cautiously optimistic that the worst of the immediate disruption may be over. Still, the longer-term impact of the conflict remains unclear, particularly as this year was widely expected to mark a long-awaited rebound after more than two years of industry slowdown. For the first quarter, revenue in the Americas – Cucinelli’s largest market, accounting for more than a third of the total – rose 20 percent. Asia posted growth of 18 percent, while Europe advanced 4.4 percent.

The company attributed the improvement in Europe in part to the expansion of flagship stores on Bond Street in London and Saint-Honoré in Paris.

That company’s growth trajectory remains well ahead of the wider sector. Analysts expect industry-wide revenue growth of about 5–6 percent this year, with demand at the aspirational end of the market still lagging.

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