Key Points
- Brunello Cucinelli posted an estimate-beating 10.7% rise in first half sales as the super-rich shrug off tariff concerns.
- The retailer also pointed to a solid start to July and confirmed its outlook for around 10% sales growth in 2025 and 2026.
- Analysts, however, expressed doubt over broad-based growth for the beleaguered sector.
Soaring sales at exclusive Italian fashion line Brunello Cucinelli indicate the super-rich are shrugging off tariff concerns even as lesser luxury brands falter. The elite retailer posted an estimate-beating 10.7% rise in first-half sales at constant exchange rates after the market close Thursday, as demand for its $2,000 cashmere sweaters and “quiet luxury” aesthetic continues apace. Preliminary second quarter revenues came in 342.6 million euros ($400.5 million), ahead of the 341.4 million estimated, according to Jefferies, which dubbed the gains “industry-topping.” Brunello Cucinelli’s “ability to drive [double-digit] growth across all regions will come as of little surprise,” the analyst wrote in a note Thursday. “These results highlight resilience and on-going, sector leading momentum,” RBC Capital Markets analysts added. The company also pointed to a solid start to July and confirmed its outlook for around 10% sales growth in 2025 and 2026. The results give an early read on the outlook for the luxury sector as second-quarter earnings kick off in earnest next week with Cartier-owner Richemont . However, analysts expressed doubt over broad-based growth for the beleaguered sector, as President Donald Trump’s on-again, off-again tariffs threaten to dampen consumer spending even at the top end. Luxury vs. tariffs European luxury names LVMH , Kering , Moncler , Richemont and Hermes all traded lower Friday. Brunello Cucinelli also swung lower after starting the session in the green. The luxury sector is expected to face a considerable hit from U.S. import duties, given its reliance on localized, niche production. In the meantime, firms have flagged any associated macroeconomic downturn and dampening of consumer sentiment as a key concern. Brunello Cucinelli, executive chairman and creative director of the eponymous brand, on Thursday described the tariff threat as “extraordinary” and demanding “utmost attention.” Nevertheless, he said that the company was focused on what it can control. “Each of us should commit even more deeply to changing what can be changed, and to accepting that which lies beyond our control,” he said in a statement accompanying the results. For the top-end brand, that looks set to include price rises. The company said it plans to raise U.S. prices by around 3% to 4% in the second half of the year as a result of higher import duties. That follows worldwide price hikes of 3% to 3.5% in the first half, according to Jefferies. The Italian fashion house has so far shown its ability to pass on costs to consumers even in tough times, reporting several consecutive quarters of solid growth. Questions remain over whether other brands will be able to follow suit. “[Brunello Cucinelli] screens very well relative to peers amid the sector’s downside risk to margins,” UBS added in a note Friday.
