Brunello Cucinelli raises 2026 revenue growth forecast to 12% on strong demand
Key Facts
Brunello Cucinelli raised its forecast for 2026 revenue growth at constant exchange rates to 12% after reporting higher sales for the first nine months of the year, according to the company's earnings statement. Its previous forecast was for growth of between 10% and 11%, before the revision set a higher annual target. Revenue for the period ended in September reached 1,123.6 million euros, with sales continuing to grow across its regions. The year-on-year increase at constant exchange rates was 13.3%, exceeding the company's raised growth target for the full year. At current exchange rates, revenue grew 10.2% from the corresponding period, according to the same statement. Reported growth in euros was slower than growth at constant exchange rates, as currency movements weighed on revenue.
In the third quarter alone, the company generated revenue of 374.2 million euros, according to its nine-month earnings statement, extending its sales growth after the first-half performance. Quarterly revenue rose 13.5% year on year at constant exchange rates, slightly faster than in the first half. Revenue for the first half of 2026 had reached 749.4 million euros, according to the financial statement for that period. It recorded year-on-year growth of 13.3% at constant exchange rates at the time, before continuing to expand in the third quarter. On the earnings call on 15 October 2026, management named North America and China among the main drivers of performance above its internal forecasts. It attributed store strength to an increase in "customer numbers and average spending," pointing to a broader customer base and higher spending by existing customers.
The Americas led the company's regions in both revenue and growth during the first nine months of 2026, according to the investor presentation accompanying the results. Revenue in the region reached 418.3 million euros, up 20% year on year at constant exchange rates and 14% at current rates. Europe ranked next by sales, generating revenue of 393.9 million euros over the same period, according to the presentation. European revenue rose 7% at constant exchange rates and 6% at current rates, growing more slowly than the Americas and Asia. Asian revenue reached 311.4 million euros over the nine months, with year-on-year growth of 14% at constant exchange rates. At current rates, Asian sales rose 10%, with all three regions recording growth despite lower rates of increase after accounting for currency effects.
By sales channel, retail led revenue growth, exceeding wholesale in both sales and the pace of year-on-year growth over the nine months. Retail revenue reached 741.0 million euros, according to the investor presentation, making it the company's largest channel during the period. Retail revenue grew 19% at constant exchange rates and 15% at current rates from the corresponding period. Wholesale, meanwhile, generated revenue of 382.6 million euros in the first nine months of 2026, according to the same presentation. Wholesale sales grew 4% at constant exchange rates and 2% at current rates, more slowly than retail on both measures. Management said on the earnings call that the online store accounts for about 6% of the company's total sales.
On profitability, net profit for the first half of 2026 had reached 78.2 million euros, according to the financial statement for that period. Net profit rose 2.0% year on year, more slowly than revenue growth at constant exchange rates in the same half. At the same time, the earnings before interest and taxes margin improved to 17.1% in the first half, according to the company's statement. The margin had stood at 16.6% in the corresponding period of 2025, reflecting improved operating profitability relative to sales. For the full year of 2026, management said on the earnings call that it was targeting an earnings before interest and taxes margin of around 17%. That target compares with a margin of 16.8% in 2025, keeping an annual improvement in the margin among management's objectives alongside revenue growth.
Management expects currencies to remain a drag on 2026 revenue growth, according to its comments on the nine-month earnings call. It estimated the expected negative impact of exchange-rate movements on annual growth at around 2.5 percentage points during the year. That estimate concerns the currency impact on revenue, while the company expressed its raised annual growth target at constant exchange rates. The company also expects revenue to continue rising in 2027, according to its outlook in the investor presentation accompanying the nine-month results. It put expected growth for next year at around 10%, after raising its forecast for the current year. The company's outlook thus extends into 2027, with management continuing to target double-digit revenue growth.