Italy’s Brunello Cucinelli eyes 10% growth in 2026 on strong demand

Italian luxury fashion house Brunello Cucinelli SpA is expecting revenue growth of 10 per cent at constant exchange rates in 2026, supported by encouraging early-year trading and solid order intake for upcoming Fall-Winter collections, which strengthen visibility on growth prospects. The company also anticipates a gradual improvement in its financial position as investment levels normalise following completion of its manufacturing capacity expansion.

Reflecting this momentum, Brunello Cucinelli in January introduced a new AI-powered e-commerce platform designed to create an advanced digital environment that interprets user intent and delivers a consistent, personalised browsing experience. Developed with Solomei AI on the Callimacus platform, the initiative aims to enhance customer engagement while reinforcing the interplay between artisanship, creativity and digital innovation, the company said in a press release.

Italy’s Brunello Cucinelli is expecting around 10 per cent revenue growth in 2026, supported by strong early trading and Fall–Winter orders, alongside the launch of its AI-driven Callimacus e-commerce platform.
In 2025, revenue rose by 11.5 per cent with higher profits and balanced regional growth.
Accelerated Made in Italy investments, boutique expansion and workforce additions reinforced capacity.

Brunello Cucinelli, executive chairman and creative director of the company, commented: “Our new e-commerce conceived to offer visitors an AI-driven digital experience through which they may discover the brand’s collections in a manner consistent with the values that have always inspired us. At the heart of Callimacus lies a new concept of website—without pages and endowed with its own intelligence—a system capable of understanding and following each user’s preferences, delivering a personalised, dynamic, pleasant and engaging experience in real time. Visitors are spending more time on the new e-commerce platform than in the past, finding the experience both stimulating and enjoyable.”

Meanwhile, the company reported revenue of €1,408 million (~$1.66 billion) for the year ended December 31, 2025, rising 11.5 per cent year-over-year (YoY) at constant exchange rates and 10.1 per cent at current exchange rates, marking double-digit revenue and profit growth in line with its earlier preliminary report. Normalised EBIT rose 11.4 per cent YoY to €235.9 million (~$278.36 million), with the margin improving to 16.8 per cent from 16.6 per cent a year earlier. Net profit increased 10.5 per cent to €142 million, equivalent to 10.1 per cent of sales.

Geographically, performance remained balanced across markets. Europe generated €494.9 million, accounting for 35.1 per cent of turnover, rising 8.4 per cent at current exchange rates (8.1 per cent constant). The Americas contributed €520.5 million or 37 per cent of revenues, growing 9.2 per cent at current exchange rates and 11.9 per cent at constant exchange rates. Asia delivered €392.5 million, representing 27.9 per cent of sales, with growth of 13.7 per cent at current exchange rates and 15.3 per cent at constant exchange rates,

By channel, the Retail segment generated €947.0 million, equivalent to 67.3 per cent of total revenues, with sales rising 11.3 per cent at current exchange rates and 12.9 per cent at constant exchange rates, supported by like-for-like boutique performance and selected flagship expansions. The Wholesale channel recorded €460.9 million, accounting for 32.7 per cent of turnover, with growth of 7.9 per cent at current exchange rates and 8.7 per cent at constant exchange rates.

A key feature of the year was the group’s accelerated manufacturing investment plan linked to Made in Italy artisan production. The company completed its 2024-2026 programme six months ahead of schedule, with capital expenditure of €146.2 million in 2025, representing 10.4 per cent of turnover. Investments included expansion of the Solomeo facility and completion of outerwear factories in Penne and Gubbio, alongside logistics and digital upgrades.

Despite the elevated investment cycle, Brunello Cucinelli maintained shareholder returns. The board will propose a dividend of €1.04 per share at the Shareholders’ Meeting on April 23, 2026, implying a 50 per cent payout ratio, while total dividends distributed in 2025 reached €68.8 million. Net debt for the core business stood at €198.4 million at year end, reflecting investment outlays and dividend payments.

The company also recorded an extraordinary provision of €8.1 million to cover potential losses on receivables from Saks Global Holdings LLC following its Chapter 11 filing. Including this item, reported EBIT was €227.8 million, corresponding to a 16.2 per cent margin.

Operationally, Brunello Cucinelli expanded its footprint to 136 directly operated boutiques, up from 130 a year earlier, while workforce numbers rose to 3,327 full-time equivalents (FTE) following more than 200 new hires across retail and artisan roles.

“A year has ended that we are pleased to describe as solid, balanced and beautiful, marked by excellent results in terms of revenues, profits and international recognition. These achievements allow us to look ahead with confidence to a future of outstanding prospects, growth in the years to come, positive forecasts and enduring prosperity. Markets across all geographies appear to be expanding in a healthy and harmonious manner, where each fashion brand expresses its own heritage, identity and positioning” added Cucinelli.

Fibre2Fashion News Desk (SG)