Brunello Cucinelli maintains growth by strengthening its model of exclusivity and investment in Italy

In 2025, Brunello Cucinelli confirmed the strength of its model based on scarcity and quality, a strategy that seems to be working well. The brand has recorded continuous sales growth while strengthening its production capacity in Italy. The annual results show an unusual combination: sustained commercial expansion accompanied by heavy investment, all aimed at preserving the brand's exclusivity in the long term. It's quite remarkable, isn't it?

Solid results, driven mainly by retail and Asia

In 2025, sales increased by around 11.5%, reaching nearly €1.41 billion, according to a report published by Insideretail and confirmed by Vogue. The retail channel now accounts for more than two-thirds of turnover, with growth of around 12-14%, according to various sources. In fact, it accounted for 67.3% of the total at the end of the year, according to Modaes. The Asia region played a key role, with growth of more than 15% at constant exchange rates and a share of nearly 28% of revenue. According to Vogue and Fibre2Fashion, China maintained double-digit growth throughout the year, which is a clear sign that local customers are increasingly looking for quality, craftsmanship, and sustainability rather than just logos.

Selective positioning and controlled distribution

Thanks to a policy of commercial exclusivity, the brand has avoided the overexposure experienced by some of its competitors. At the end of December, the group had 136 stores of its own, with locations chosen in strategic locations such as London, Paris, and Los Angeles, according to Modaes. Sales in department stores remain present but are well controlled, which helps to boost wholesale while avoiding weakening the brand image, which is rather clever.

“Its luxury wholesale strategy is sound, excluding Saks Fifth Avenue,” said Milton Pedraza, founder and CEO of the Luxury Institute. According to Pedraza, “Its partnership with Harrods has been remarkable. Its loyalty to small boutiques that target affluent customers is not only wise, but also profitable.” These remarks clearly illustrate the group's strategic preference for distributors with strong recommendation power. It's a rather smart strategic approach, isn't it?

Investing in the cycle to guarantee "Made in Italy"

What is most striking in 2025 is the massive investment effort, a real challenge: €145 million over two years to double the size of the Solomeo headquarters and increase craftsmanship capacity in Italy, with new units in Penne and Gubbio dedicated in particular to outerwear and clothing manufacturing. Insideretail reports that this work was completed six months ahead of schedule, anticipating demand for the next decade, which is a rather smart move, if you ask me.

This wave of investments has certainly had a temporary impact on the financial structure: net debt stood at around €200 million at the end of the financial year, after the payment of dividends of €69 million, as mentioned in the original article. It should be emphasized that this demonstrates a clear desire to prepare for the future, even if it does involve a degree of short-term risk.

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Outlook and prudent governance

Management forecasts growth of around 10% for this year and has set a target of achieving sales of nearly €1.8 billion by 2028. All this while remaining faithful to the brand's exclusivity and consistency, as reported by Insideretail. Moreover, the initial results for 2025 are encouraging: revenue grew by more than 10% in the first quarter, according to the board of directors' press release. The strategy? Invest in the offering rather than resorting to excessive promotions. Milton Pedraza warns: "Discounts in high-end luxury are insidious, and then suddenly it becomes a problem." Basically, care must be taken not to devalue the perception of luxury by systematically slashing prices, a point that, after all, is crucial to the sustainability of the model.

Regional nuances and implications for the sector

The US markets performed very well, with growth of around 12%, especially in major US cities. In Europe, growth was more moderate but was fueled by tourism and a loyal local customer base, particularly in Italy. These trends are corroborated by several specialist media outlets and the group's financial statements. The combination of a controlled single-brand network, productive investments in Italy, and strong demand in Asia is the recipe that, for many, puts Brunello Cucinelli in a defensive yet selective position. Of course, this temporary increase in debt requires rigorous management, and caution is needed until the situation adjusts with investments at a more "normal" level.

Conclusion: scarcity as a competitive advantage

The company has turned strategic restraint into a competitive advantage. By focusing on Italian craftsmanship, discreet but effective distribution, and targeted investments, Brunello Cucinelli has strengthened its value proposition without compromising its identity. However, as always in this sector, the key to future success will likely be disciplined management: intelligently managing inventory, controlling openings, and maintaining pricing that continues to protect this aura of exclusive luxury, while remaining pretty handy. In short, the balance remains fragile, but the brand does not seem ready to abandon its philosophy.