Medieval Hilltop
A one-time engineering student, Cucinelli dropped out of college and founded his company with half a million Italian liras ($550) in 1978. His bright-colored cashmere sweaters proved popular and, in 1987, he moved his workshop into a converted 14th century castle in the medieval hilltop hamlet of Solomeo, which is located in Italy’s Umbria province, east of Rome.
The company’s website features quotes from Socrates, Aristotle and Immanuel Kant, and over the past 25 years, Cucinelli has helped restore and renovate Solomeo, building a theater, amphitheater and gardens for workers and residents.
This is part of a business philosophy that he set out in his letter to shareholders in the company’s 2012 annual report, referring to it as “humanistic capitalism.”
“Throughout the company’s 35 years, I have invested everything in human dignity, always believing that working in the best conditions makes people more creative ingenious, and responsible,” he wrote.
Milan Debut
Cucinelli’s shares rose 50 percent in their trading debut in Milan, after investors sought to purchase 17 times the amount of stock available in its initial public offering, Bloomberg News reported in April 2012.
“There are only a few luxury brands that can justify Cucinelli’s price positioning,” Goldman Sachs analyst William Hutchings wrote in a March 5 note. “Design, history, quality, manufacturing and provenance all support its price position and the company is well positioned to benefit from growing global demand for high-quality, authentic luxury products.”
The billionaire owns his shares through Solomeo-based holding company Fedone Srl, according to his company’s website.
“We want to grow but in a way that protects the exclusivity of the brand,” he said. “This definitely can be done. The world is a big place. Currently we export to 59 countries so maybe in five years we will export to 70.”