full year, accelerating to 14.5 per cent in the fourth quarter, while wholesale, often a drag for luxury brands in uncertain markets, still posted an 8.5 per cent increase. The brand’s retail dominance now accounts for more than two-thirds of total sales. With 136 directly operated boutiques worldwide and a carefully curated presence inside major luxury department stores, Brunello Cucinelli has avoided the overexposure that has diluted equity for some peers. “Its luxury wholesale strategy is sound, excluding Saks Fifth Avenue,” said Milton Pedraza, founder and CEO of the Luxury Institute. “Its collaboration with Harrods has been phenomenal. Its loyalty to small boutiques that serve the wealthy is wise and profitable.” Asia reasserts its strategic importance Geographically, growth was broad-based, but Asia was the standout. Revenues in the region climbed 15.3 per cent at constant exchange rates, accounting for nearly 28 per cent of group turnover. Within that, China continued to deliver consistent double-digit growth across all quarters.  Brunello Cucinelli has positioned itself squarely at the very top of the luxury spectrum in China, targeting consumers who are increasingly value-driven but not price-sensitive. Management describes the market as having reached a “new equilibrium” characterized by a more conscious demand for quality, craftsmanship and longevity. The Americas also delivered robust growth of nearly 12 per cent, supported by resilient high-net-worth spending and the brand’s strong positioning in cities like New York and Los Angeles. Europe, while comparatively slower at just over 8 per cent growth, benefited from continued luxury tourism flows and a loyal domestic clientele, particularly in Italy. Investing through the cycle Perhaps the most strategically significant aspect of Brunello Cucinelli’s 2025 performance lies on the balance sheet. Over the past two years, the company has executed an extraordinary €145 million investment program, equivalent to more than 10 per cent of its annual revenues, to double its Solomeo headquarters and expand its Made in Italy production capacity. The company accelerated these investments by six months, completing them ahead of schedule. New artisanal facilities in Penne and Gubbio, dedicated to outerwear and tailoring, are designed to secure production quality and capacity for the next 10 to 15 years. However, it temporarily pushed characteristic net debt to around 200 million euros at year-end, after paying €69 million in dividends. Management expects leverage to improve as capital expenditure returns to normalized levels in the coming years. “We believe that Brunello will become smarter about inventory management and slowly discontinue corrosive discounting. Discounting in high luxury damages slowly; then suddenly,” Pedraza added.  A measured outlook  The Italian house is projecting revenue growth of around 10 per cent for this year. Over its current five-year plan, the group is targeting revenues of approximately 1.8 billion euros by 2028, while explicitly committing to preserve exclusivity, craftsmanship and brand coherence. Further reading: What does the future of luxury retail in America look like post-Saks Global?