Italian luxury fashion house Brunello Cucinelli has ended fiscal 2025 (FY25) on a historic high, reporting preliminary record turnover of €1,407.7 million (~$1.63 billion), driven by strong demand across retail and wholesale channels and sustained growth in all major global markets. At constant exchange rates, revenues rose 11.5 per cent, exceeding expectations, while at current exchange rates sales increased 10.1 per cent.

The fourth quarter (Q4) confirmed the momentum seen throughout the year. Revenues for the three months to December 31, reached €388.6 million, up 11.9 per cent at constant exchange rates, despite what management described as a particularly demanding comparison base following strong growth in late 2024. This consistency of growth underlined the resilience of demand for the brand’s high-end collections.

Brunello Cucinelli has reported preliminary FY25 revenues of €1,407.7 million (~$1.63 billion), up 11.5 per cent at constant exchange rates, driven by strong retail and wholesale demand.
Retail sales rose 12.9 per cent, while Asia led regional growth.
Heavy investment in Made in Italy capacity lifted debt but supports future expansion.
The company expects around 10 per cent revenue growth in 2026.

Retail remained the cornerstone of performance in FY25, with revenues rising 12.9 per cent at constant exchange rates and accelerating further to 14.5 per cent in the fourth quarter (Q4) alone. The company said this was supported by both solid like-for-like sales and the contribution of new and expanded boutiques.

During the year, Brunello Cucinelli completed major expansions in London, Paris and Los Angeles, and opened new locations in Carmel in the Los Angeles area, Macau and Shanghai Pudong. As of December 31, 2025, the brand operated 136 mono-brand boutiques worldwide, alongside 57 directly managed spaces in leading luxury department stores.

The wholesale channel also delivered healthy growth, with revenues rising 8.5 per cent at constant exchange rates for the year and 6.3 per cent in the second half. Strong sell-through of the Spring/Summer 2025 and Autumn/Winter 2025 collections, combined with replenishments during the year, supported the performance. Early deliveries of the Spring/Summer 2026 line and very positive feedback on the women’s Autumn/Winter 2026 pre-collection further strengthened order intake towards the end of the year, Brunello Cucinelli said in a press release.

Geographically, Americas remained the group’s largest market, generating €520.5 million in revenues, equivalent to 37 per cent of total turnover, and growing 11.9 per cent at constant exchange rates. The region delivered double-digit growth in every quarter, with fourth-quarter sales up 14.2 per cent, even against a very strong comparison in late 2024. Management attributed this to the brand’s positioning at the very top end of the luxury market and the loyalty of its core clientele.

Europe contributed €494.6 million, or 35.1 per cent of total revenues, with growth of 8.1 per cent at constant exchange rates. Italy stood out within the region, where revenues rose 12.5 per cent to €158.5 million, supported by strong domestic demand. High-end tourism flows also continued to support sales across key European markets.

Asia was the fastest-growing region, with revenues of €392.6 million, up 15.3 per cent at constant exchange rates and accounting for 27.9 per cent of total turnover. China remained a major growth driver, delivering consistent double-digit expansion quarter after quarter. The company said Chinese consumers are increasingly focused on quality, craftsmanship and manual skills, aligning well with Brunello Cucinelli’s positioning. South Korea and Japan also posted solid results, while the Middle East delivered strong performances on the back of both local and international clientele.

Beyond commercial results, 2025 was also a strategically important year in terms of investment. The group accelerated by around six months the completion of its three-year 2024-2026 plan focused on strengthening Made in Italy artisanal production. Over the past two years, Brunello Cucinelli has doubled the size of its Solomeo headquarters and built two new men’s tailoring facilities in Gubbio and Penne (Italy), significantly expanding its production capacity. Investments in 2025 alone amounted to around €145 million, equivalent to about 10.5 per cent of revenues.

These investments, together with the distribution of €69 million in dividends, representing a 50 per cent payout ratio, lifted characteristic financial indebtedness to around €200 million at the end of December 31, 2025. The company said it expects net debt to progressively improve in the coming years as capital expenditure returns to more normal levels following the completion of these major projects.

“We have closed a year which we have defined as record-breaking, both in terms of revenues and brand image; given the quality of sales, we anticipate a healthy, sustainable, and balanced profit for 2025,” said Brunello Cucinelli, executive chairman and creative director of the company. “From the perspective of image, style, and lifestyle, we recognise in our Italian Casa di Moda a harmonious identity, cultivated over time with a sense of moderation, consistency, and equilibrium.”

Looking ahead, management said the start of sales for the Spring/Summer 2026 collection has been very positive, while feedback and order intake for the women’s Autumn/Winter 2026 pre-collection have been excellent. On this basis, Brunello Cucinelli expects revenue to grow by around 10 per cent in 2026.

The company reiterated its confidence in its medium-term strategy under the 2024–2028 five-year plan. With 2026 representing the third year of this programme, Brunello Cucinelli continues to target revenues of approximately €1.8 billion by 2028, while preserving exclusivity, craftsmanship, Made in Italy heritage, brand positioning and sustainability.

Fibre2Fashion News Desk (SG)

India’s economy is expected to grow 7.5-7.8 per cent in FY2025-26, supported by resilient domestic demand, easing inflation, and a series of fiscal, monetary, and labour reforms, according to the Deloitte Global Economics Research Centre’s report, ‘India Economic Outlook, January 2026.’ Growth is projected to moderate to 6.6-6.9 per cent in FY2026-27 as global uncertainties and trade frictions persist.

The global consultancy said 2026 will be defined by resilience in domestic consumption, decisive policy reforms, and recalibration of trade strategy, as India navigates spillover effects from protectionist shifts in advanced economies, volatile capital flows, and higher tariffs on select exports.

Despite global uncertainty and rising trade frictions, India is expected to outpace peer economies, supported by low inflation, robust consumption, and sustained public investment.
Deloitte cautioned that delayed trade deals and US tariffs could cap export growth, reinforcing the need for supply-side reforms to build long-term resilience.

Despite these headwinds, India maintained strong momentum in the first half of fiscal 2025-26, recording 8 per cent growth, driven by robust private consumption and investment. Inflation averaged 1.8 per cent, its lowest level in a decade, boosting real incomes and consumer confidence.

Private consumption rose 7.9 per cent year-on-year (YoY) in the second quarter (Q2), supported by tax relief, goods and services tax (GST) rationalisation, and favourable monsoon conditions. At the same time, government capital expenditure accelerated, with utilisation reaching 51.8 per cent in the first half of the fiscal, lifting gross fixed capital formation growth to 7.6 per cent.

On the production side, gross value added (GVA) expanded 8.1 per cent in Q2, led by manufacturing growth of 9.1 per cent and services growth of 9.2 per cent.

Deloitte noted that policy co-ordination played a central role in cushioning the economy. Fiscal measures focused on boosting disposable incomes and sustaining infrastructure investment, while the Reserve Bank of India (RBI) delivered a cumulative 125-basis-point rate cut in 2025 to support credit growth and domestic demand. The long-pending labour codes, implemented in 2025, are expected to improve ease of doing business and accelerate job formalisation.

On the external front, India continued to diversify trade partnerships through agreements with the UK, New Zealand, Oman, and European Free Trade Association (EFTA), while expanding engagement with emerging markets across Africa, Southeast Asia, and West Asia. However, delays in the proposed United States (US)-India trade agreement remain a key risk for exporters.

Deloitte estimated that in the absence of a US-India trade agreement, American tariffs could shave 0.3-0.4 per cent of Gross Domestic Product (GDP) from Indian exports, likely keeping goods export growth subdued in the near-term.

Looking ahead, policy priorities must transition from demand-led support to supply-side reforms such as GST 2.0, improved logistics efficiency, and productivity gains to sustain growth and strengthen resilience against future global shocks, Deloitte noted.

Fibre2Fashion News Desk (CG)

US import tariffs are paid by Americans, not foreign exporters contrary to official rhetoric, according to new research from the Kiel Institute for the World Economy. The study finds that 96 per cent of tariff costs are borne by US importers and consumers, acting like a domestic consumption tax that raises prices, shrinks product variety, and depresses trade volumes.

US import tariffs are largely paid by Americans, not foreign exporters, according to a Kiel Institute study.
Around 96 per cent of tariff costs are borne by US importers and consumers, functioning like a domestic consumption tax.
Analysis of 25 million shipments shows trade volumes fell sharply while export prices stayed firm, including a 24 per cent drop in Indian exports to the US.

“The tariffs are an own goal. The claim that foreign countries pay these tariffs is a myth. The data show the opposite: Americans are footing the bill,” said Julian Hinz, research director at the Kiel Institute and one of the authors of the study.

The research, analysing over 25 million shipment records worth nearly $4 trillion, showed US customs revenue rose by around $200 billion in 2025, while foreign exporters absorbed only four per cent of the burden. Trade volumes collapsed, but export prices did not fall, indicating exporters did not offset tariffs through discounts.

Examining unexpected tariff hikes on Brazil and India in August 2025, the study found Indian exports to the US fell by up to 24 per cent in value and volume, while unit prices remained unchanged.

“We compared Indian exports to the US with shipments to Europe and Canada and identified a clear pattern. Both export value and volume to the US dropped sharply, by up to 24 per cent. But unit prices—the prices Indian exporters charged—remained unchanged. They shipped less, not cheaper,” Hinz explained.

Researchers conclude that tariffs squeeze US company margins, raise consumer prices, and force exporters to seek alternative markets, ultimately disadvantaging all sides.

Fibre2Fashion News Desk (HU)