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.
"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.
"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.