As financial uncertainty deepens at Saks Global, one of the world’s largest multi-brand luxury retail groups, Italian luxury brand Brunello Cucinelli has made clear that it will continue to stand by its department store–focused wholesale strategy, Reuters reports.
In 2024, Saks Global raised several billion dollars as the cornerstone of its restructuring efforts and acquired Neiman Marcus Group. Through this transaction, Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman were brought under one umbrella, with the ambition of building a technology-driven luxury department store group.
However, by spring 2025, bondholders were reportedly facing mark-to-market losses exceeding $1 billion, fueling speculation that the company may be considering options that include filing for Chapter 11 bankruptcy protection under U.S. law. This turbulence has once again highlighted the structural risks faced by brands that rely heavily on the department store channel.
On January 2, Saks Global also announced a leadership change as part of its response to these challenges. Chief Executive Officer Marc Metrick stepped down, with Executive Chairman Richard Baker assuming the role of CEO.
Against this backdrop, many luxury brands have accelerated their shift toward direct-to-consumer retail, seeking greater control over pricing, inventory management, and profit margins.
Brunello Cucinelli, however, is taking a different path. Speaking to Reuters, founder and chairman Brunello Cucinelli stated that the company remains committed to its wholesale-focused strategy. He added that dealings with Saks Global had resulted in only a one-month payment delay to date, and that there had been no operational issues.
“We don’t foresee any economic risks, except for extremely limited ones,” Cucinelli said.
“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.”
Higher Wholesale Exposure Than Peers
According to data compiled by Reuters, approximately 36% of Brunello Cucinelli’s revenue comes from wholesale channels, while around 64% is generated through its own retail network. Compared with many major luxury brands that have significantly increased their direct retail exposure in recent years, Cucinelli’s reliance on wholesale remains relatively high.
Meanwhile, Saks Global is also reported to be exploring asset optimization measures, including the potential sale of a minority stake in Bergdorf Goodman. Whether the new leadership team can restore financial stability and rebuild brand value remains the central question going forward.
As the department store model faces a structural turning point, the reasons behind Brunello Cucinelli’s decision to maintain its wholesale-heavy approach—and whether that strategy can continue to deliver results in a rapidly evolving luxury market—will be closely watched. In an industry where direct retail is becoming the dominant paradigm, the company’s stance, alongside the future trajectory of Saks Global, is set to remain under scrutiny.
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