Saks Global, created after Saks Fifth Avenue's parent company Hudson's Bay Company acquired rival Neiman Marcus, saw its CEO depart this month amid reports it was preparing for bankruptcy after failing to pay over $100 million in interest.
This has put the strategies of companies like Cucinelli—which have heavily invested in high-end department stores—under scrutiny, as the future of these retailers appears increasingly uncertain in a sluggish global luxury market where many brands have shifted toward their own retail outlets.
The company, however, is sticking with this approach.
Cucinelli, founder and chairman of his eponymous company, told Reuters that the firm will press ahead with its strategy, which places a strong emphasis on the wholesale channel.
Cucinelli says he has only experienced a one-month payment delay from Saks Global and that, operationally, he has had no issues with the retailer.
"We do not foresee any economic risks, except for extremely limited ones," he told Reuters.
"And consider that these would be the first (losses) in 45 years of business. Every year we lose 0.1% from our multibrand partners, which is practically nothing."
CUCINELLI RELIES MORE THAN PEERS ON WHOLESALE
Still, Cucinelli is more exposed than others.
Co-CEO Luca Lisandroni in December praised the cashmere king's ties with Saks and announced some of the "best results ever" in its U.S. stores, "demonstrating the great centrality of this client in the global luxury landscape."
According to data gathered by Reuters, the Italian company generates around 36% of its revenue from the wholesale channel and about 64% from its own retail stores, relying more heavily on multibrand distribution compared to some leading luxury operators.
Over the last decade, luxury groups have shifted towards their own retail networks, allowing for greater control over prices, inventory, and margins. Retail now accounts for about 90% of Prada's sales, 81% for Moncler, 87% for Zegna, and 75% for Kering, the owner of Gucci.
Cucinelli, which targets a select group of affluent high-end customers, has proven to be one of the industry's most resilient brands amid a slump in demand.
Sales in both the wholesale and retail channels grew in the first nine months of 2025, and in December the brand raised its full-year revenue growth forecast to 11-12%.
Svetlana Menshchikova, an analyst at Morningstar, said that a potential bankruptcy or restructuring of Saks could result in "delayed payments, limited exposure to bad debts, and perhaps some lost sales if department stores are unable to restock their inventory."
"The company has always emphasized that U.S. wholesalers are key clients and an integral part of its brand image and business model," she said. "Even though we do not expect a severe impact on the company, given Cucinelli's global footprint and strong balance sheet."
"HYPOTHETICALLY SPEAKING, I'D BUY SAKS GLOBAL TOMORROW"
Saks Global's financial woes reflect broader challenges in the $417 billion global luxury market, which is struggling to emerge from years of stagnant sales.
Last month, the Wall Street Journal reported that the U.S. luxury retailer—which operates Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman—missed an interest payment at the end of December and is preparing to file for bankruptcy.
Founder Cucinelli partly credited department stores and said he has faith in Saks and the 400 multibrand stores his label works with worldwide.
"We do 40% of our business with multibrand partners and I am absolutely happy with that," he said, calling department stores "true custodians of the brand."
"To make it even clearer how much we believe in multibrand stores, hypothetically speaking, if I were an interested investor, I would buy Saks Global tomorrow."
(Elisa Anzolin, translated by Stefano Bernabei, editing by Antonella Cinelli)
