In The First Half, Brunello Cucinelli Net Sales Increased By 9.7% Over The Same Period Last Year.

Italy

Group Brunello Cucinelli achieved steady profit growth in the first half of the year, benefiting from all regions.

The growth of sales and the proportion of direct sales to total sales.

As at June 31, 2016, the main data of the company were as follows:

Net sales of about 220 million euros, an increase of 9.7% over the same period last year.

The profit before interest tax is about 35 million 500 thousand euros, and the pre tax profit margin is about 16.1%, compared with 16.6% in the same period last year.

Core profit grew by 6.3% over the same period last year.

In the first half of the year, the company's operating cost increased by 11% compared to the same period last year, and the rent of new boutiques in major markets accounted for a large proportion.

Net profit of 17 million 900 thousand euros, an increase of 15.7% over the same period last year.

The company released preliminary data in the first half of July 14th.

Regional performance in the first half of fiscal year 2016:

Sales in North America accounted for 35% of the total, and sales increased by 10% over the same period last year.

Sales in Greater China accounted for 6% of the total, and sales increased by 15% over the same period last year.

Italy market sales accounted for 18% of the total, sales increased by 7% over the same period last year.

Sales in other regions increased by 17% over the same period, especially in Greece and Spain.

Unlike other luxury goods manufacturers in Hongkong, China, Brunello Cucinelli group has maintained steady growth in China's Hongkong and Mainland China.

Brunello Cucinelli believes that this is due to tourism and local consumers. He also pointed out that the company's business development in China is still in its infancy.

Brunello Cucinelli says there are many new orders in the spring, because the style, color and size of the Brunello Cucinelli clothing are very popular with the public.

Brunello Cucinelli has a three euro (2016-2018) investment project worth 80 million euros, and has invested 18 million euros in the first half of this year. It is estimated that the total investment in the 2016 fiscal year will reach 34 million euros.

The remaining 4500 million euros will be invested in the next two years.

The main purpose of this project is to expand the retail network, help companies develop into digital platforms, and enhance their competitiveness in the digital age.

The company's online shopping mall is expected to be put into operation next month in 1.

As far as the distribution of sales channels is concerned, Brunello Cucinelli hopes to achieve an ideal state: sales from department stores and brand stores account for 50%.

As of 14 August,

The same store sales of straight outlets increased by 3.7% over the same period last year.

Brunello Cucinelli, founder and chairman of Brunello Cucinelli, said that the data in the first half of 2016 gave them full confidence that 2016's annual sales growth and pre tax profit growth rate were about 10%.