This 'quiet luxury' Italian brand is shaking off tariff woes as sales jump

Soaring income astatine exclusive Italian manner enactment Brunello Cucinelli bespeak the super-rich are shrugging disconnected tariff concerns adjacent arsenic lesser luxury brands falter.

The elite retailer posted an estimate-beating 10.7% emergence in first-half income astatine changeless speech rates after the marketplace adjacent Thursday, arsenic request for its $2,000 cashmere sweaters and "quiet luxury" aesthetic continues apace.

Preliminary 2nd 4th revenues came successful 342.6 cardinal euros ($400.5 million), up of the 341.4 cardinal estimated, according to Jefferies, which dubbed the gains "industry-topping."

Brunello Cucinelli's "ability to thrust [double-digit] maturation crossed each regions volition travel arsenic of small surprise," the expert wrote successful a enactment Thursday.

"These results item resilience and on-going, assemblage starring momentum," RBC Capital Markets analysts added.

The institution besides pointed to a coagulated commencement to July and confirmed its outlook for astir 10% income maturation successful 2025 and 2026.

The results springiness an aboriginal work connected the outlook for the luxury assemblage arsenic second-quarter net footwear disconnected successful earnest adjacent week with Cartier-owner Richemont.

However, analysts expressed uncertainty implicit broad-based maturation for the beleaguered sector, arsenic President Donald Trump's on-again, off-again tariffs endanger to dampen user spending adjacent astatine the apical end.

European luxury names LVMH, Kering, Moncler, Richemont and Hermes each traded little Friday. Brunello Cucinelli besides swung little aft starting the league successful the green.

The luxury assemblage is expected to look a sizeable deed from U.S. import duties, fixed its reliance connected localized, niche production. In the meantime, firms person flagged immoderate associated macroeconomic downturn and dampening of user sentiment arsenic a cardinal concern.

Brunello Cucinelli, enforcement president and originative manager of the eponymous brand, connected Thursday described the tariff menace arsenic "extraordinary" and demanding "utmost attention." Nevertheless, helium said that the institution was focused connected what it tin control.

"Each of america should perpetrate adjacent much profoundly to changing what tin beryllium changed, and to accepting that which lies beyond our control," helium said successful a connection accompanying the results.

For the top-end brand, that looks acceptable to see terms rises.

The institution said it plans to rise U.S. prices by astir 3% to 4% successful the 2nd fractional of the twelvemonth arsenic a effect of higher import duties. That follows worldwide terms hikes of 3% to 3.5% successful the archetypal half, according to Jefferies.

The Italian manner location has truthful acold shown its quality to walk connected costs to consumers adjacent successful pugnacious times, reporting respective consecutive quarters of coagulated growth. Questions stay implicit whether different brands volition beryllium capable to travel suit.

"[Brunello Cucinelli] screens precise good comparative to peers amid the sector's downside hazard to margins," UBS added successful a enactment Friday.