Finance
Saks woes cloud cashmere king Cucinelli's department store bet
Published by Global Banking & Finance Review®
Posted on January 9, 2026
4 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 9, 2026
4 min readLast updated: January 20, 2026
Cucinelli's strategy is under scrutiny as Saks faces financial issues, impacting the luxury retail market. Despite potential risks, Cucinelli remains optimistic.
By Elisa Anzolin
MILAN, Jan 9 (Reuters) - Italian luxury brand Brunello Cucinelli, known for its $3,000 cashmere sweaters, bet big on department stores, a strategy now in the spotlight as iconic U.S. High Street retailer Saks struggles to pay back debts.
Saks Global, created after Saks Fifth Avenue parent Hudson's Bay Company bought rival Neiman Marcus, saw its CEO depart this month, amid reports it was preparing for bankruptcy after missing an over $100 million interest payment.
That's put a harsh spotlight on the strategy of firms like Cucinelli that have bet heavily on high-end department stores, whose future is more uncertain in a weak global luxury market where many brands have shifted towards their own outlets.
The firm, however, is doubling down.
Brunello Cucinelli, founder and chairman of his namesake firm, told Reuters that the company was sticking with its strategy, which gives a strong emphasis to the wholesale channel.
He said that so far it had only faced a one-month delay in payments from Saks Global, and at the operational level had not had any issues with the retailer.
"We don't foresee any economic risks, except for extremely limited ones," Cucinelli told Reuters by phone.
"And bear in mind, they would be the first (losses) in 45 years of business. Every year, we lose 0.1% from our multibrands, which is practically nothing."
CUCINELLI RELIES MORE THAN PEERS ON WHOLESALE
Cucinelli is, however, more exposed than most.
Co-CEO Luca Lisandroni in December lauded the cashmere king's ties with Saks and heralded some of its "best results ever" in its stores around the United States, "demonstrating the great centrality of this client in the global luxury landscape."
The Italian firm makes some 36% of its revenues from the wholesale channel and around 64% from its own retail outlets, relying more heavily on multi-brand distribution than some key luxury peers, according to data compiled by Reuters.
Over the past decade, luxury groups have shifted toward their own retail networks, giving them more control over pricing, inventory and margins. Retail now accounts for some 90% of sales by Prada, 81% at Moncler, 87% at Zegna and 75% at Gucci-owner Kering.
Cucinelli, which targets some of the highest-end wealthy customers, has proved to be among the most resilient brands in the industry hit by lower demand.
Sales in both the wholesale and retail channel grew in the first nine months of 2025 and the brand raised its full-year revenue growth forecast to 11–12% in December.
Morningstar analyst Svetlana Menshchikova said that a possible Saks bankruptcy or restructuring could lead to "delayed payments, limited bad-debt exposure and maybe some lost sales if the department stores would fail to replenish their stock".
"The company has consistently highlighted the U.S. wholesalers as key clients and an integral part of its brand image and business model," she said. "Although we do not expect a severe impact on the company given Cucinelli's global footprint and strong balance sheet."
'HYPOTHETICALLY SPEAKING, I WOULD BUY SAKS GLOBAL TOMORROW'
Saks Global's financial troubles reflect wider challenges in the $417 billion global luxury market, which is battling to emerge from years of stalling sales.
The U.S. luxury retailer, which operates Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, missed an interest payment due at the end of December and it is preparing to file for bankruptcy, the Wall Street Journal reported last month.
Founder Cucinelli credited department stores in part for that and said he had faith in Saks and the 400 multibrand stores he said the brand worked with worldwide.
"We do 40% of our business with multibrands and I'm absolutely delighted," he said, calling department stores the "true custodians of the brand."
"To make it even clearer how much we believe in multibrand (stores), hypothetically speaking, I would buy Saks Global tomorrow if I were an interested investor."
(Reporting by Elisa Anzolin; Editing by Adam Jourdan and Nick Zieminski)
A department store is a large retail establishment that offers a wide variety of goods across different categories, including clothing, electronics, and household items, often organized into separate departments.
Wholesale distribution involves selling goods in large quantities at lower prices, typically to retailers or other businesses, rather than directly to consumers.
Luxury retail refers to the sale of high-end products, often characterized by premium pricing, exclusive brands, and exceptional customer service.
A financial crisis is a situation where the value of financial institutions or assets drops significantly, leading to widespread economic instability and potential bankruptcy.
Revenue growth is the increase in a company's sales over a specific period, indicating its ability to expand its business and generate more income.
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