MILAN – Brunello Cucinelli would like his company to be called Casa di Moda, and feels that it has deserved the right to be defined that way.
“Our values and our fashion are representative of a fashion house,” the entrepreneur said during a pre-Christmas conference call with analysts and the press at the end of the session on Tuesday. “I’ve always been fascinated by houses like Hermès and Chanel,” he admits.
Cucinelli was very keen to keep the call, which was not originally on the financial calendar, and he expressed his hopes that the pandemic will end “in three or four months”, the push for his business. in “economics, morals, ethics and culture”. sustainability ”, and frankly admitted his angst at the G20 in Rome at the end of October, where Prime Minister Mario Draghi asked him to talk about humanist capitalism and human sustainability.
“I couldn’t eat or sleep and I was there too early in the morning, but I couldn’t risk getting sick from bad food or being delayed somehow,” he said. he confided. And, worried about his speech, once again he turned to St. Augustine for guidance, “letting the words come from the soul.”
He said he was “very confident in the future”, but never forgetting “moderation and restraint”. In fact, he stressed the importance of “a healthy and sustainable balance between profit and giving back, which, along with the reconciliation of work and human privacy, and the desire to repair and reuse, are core values of our Casa di Moda and we have always tried to run our activity according to these high and noble principles.
Cucinelli, who serves as executive chairman and creative director of his company, did not forget that he was speaking to analysts, and while preliminary figures will be released in January, he reiterated that the year 2021 was a year of rebalancing and he expected to end the 12 months with 30 percent revenue growth. This allowed the company to fully recover the 10% loss in 2020 and to “resume its solid and serene course towards the objectives of the 2019 to 2028 plan”, which allows it to double its sales by 2028.
Net financial debt in 2021 is expected to be around 35 million euros, a strong improvement compared to 93.5 million euros at December 31, 2020, thanks to the generation of cash from operating activities and good results in the management of trade. Capital city.
“We also have strong expectations for the next two years, where we confirm our expectations of a pleasant, healthy and balanced growth of around 10 percent in 2022 and 2023”, continued Cucinelli, based on orders from the Spring 2022 collection and the “very positive sales trend” of the fall 2021 season. He ventured to say that 2023 could be a year “above expectations”.
Cucinelli said growth in 2021 came from all geographies and distribution channels, underlining “the great health of the brand, further consolidating its positioning in absolute luxury.”
He underlined the importance of being a ready-to-wear house but also of becoming more and more a lifestyle house, with the introduction of homewear and, thanks to the collaboration with Oliver Peoples and Luxottica, in eyewear.
He also expects “a marked improvement in margins in 2021 compared to last year, which had been strongly impacted by the pandemic. During the two-year period 2022-2023, we plan to return to pre-pandemic profitability levels, which have always been based on the values that inspire us: good growth, good profit and the right balance between profit and giving back.
Over the ten-year plan period, Cucinelli has also set targets for reducing the company’s greenhouse gas emissions by 60% in terms of economic intensity and in absolute terms by 70% for scope emissions. 1 and 2 and 22.5% for scope 3..
“We are firmly committed to helping to improve the problem of climate change on our planet,” stressing that the “type of brand products with high manual skills and craftsmanship considers low emissions. However, we also try with great responsibility and dedication to convey this serious commitment to all our partners. “
The ideas of humanist capitalism and human sustainability are the foundations of the company, which translate into “working and living in harmony with creation”. Cucinelli listed a set of 10 guidelines of “ideals for life and work”.
Among some, these included love and respect for the Earth, without using more resources than necessary or natural. “We always act as faithful and loving custodians of creation and we believe in the moral and economic dignity of human beings. “Cucinelli stressed the importance of” fair profitability and harmony between profit and return to the community. We believe in universalism and we act with great respect for all civilizations.