Good evening, Chorus Call operator speaking. Welcome to the presentation of the First Quarter 2021 Revenues of the Brunello Cucinelli Group. I'd like to remind you that all participants are in listen-only mode. Following the initial presentation, there will be the opportunity to ask questions by the financial community. The speakers will be Brunello Cucinelli, President, Executive Chairman, and Creative Director, Moreno Ciarapica, CFO, and Pietro Arnaboldi, Head of Investor Relations. In order to receive help from an operator during the call, please press star followed by zero. Now I'd like to give the floor to Brunello Cucinelli. The floor is yours.
Here we are. Good evening. It is always a pleasure to speak to you, although our last meeting dates back to just a month ago. It is always very interesting to hold these calls, so analysts, investors, and journalists. Just over a month ago, we met in this call that we consider very, very important, and we still call it the call of the rebirth, of the renaissance, following just over a year of pain and sorrow for our body, our soul, and the spirit. In that call, besides the financial statements 2020, we basically showcased our idea for the resumption of activities and the projects for the coming decades. Today's call, we would like to call it the call of style and taste of Brunello Cucinelli, and you'll understand why later on. For the coming decades, trying to envisage the large opportunities that this brand can offer us.
Before we start, we'd like to tell you that in this vaccine hub that we opened about 25 days ago in the Park of Beauty, for those who know Solomeo, where the foundation and the company only provide the location and the wages for the nurses and doctors. We are vaccinating, unfortunately, at quite a normal kind of pace and rate. The hope is that starting from next week with the arrival of new vaccines, we can really reach at night many vaccines and also we can have night shifts too, because we have all the night lights in this location. I think, and I said to the doctors, there will definitely be young people who want to be vaccinated even at 3:00 A.M. in the morning. Of course, first of all, it's compulsory. We follow the age standard, the age criterion, because it's very important.
Our President of the Republic on December 31st, in the end-of-the-year speech and address, he said, "Let us all be vaccinated when it is our turn." Of course, if we finish one day earlier, we have saved a human life, and we also have gained one day to resume our business. As usual, we are here in Solomeo, and we have all been at work in presence physically since May 3rd in 2020. In the end, we only closed for only six weeks. I'm very happy with that because I think that the work we carried out together in the factory and the offices, on the one hand, this brings about a very powerful collective creativity. I really believe in this. A very clear-cut distinction between time for work and time for private life.
Perhaps also the corporate culture is strengthened as a result, and it becomes an important lesson for the young generations. Together with me, I am the Executive Chair and Creative Director since April last year, and I have my 67 years of age with me. The rather usual people, Riccardo and Luca, the young 40-year-olds, young CEOs, that were appointed precisely a year ago. I have to say, Luca, Riccardo, it couldn't have been a better situation, just to start your stellar, highly responsible career. We are very, very happy with you, and we say this publicly. Thank you on behalf of the whole company, and I hope also on behalf of the whole financial community and the whole Solomeo community, I'm sure about that.
Not just because of your expertise, but also for your human qualities that we attach a lot of value to in order to build better people. We have Moreno here, 59 years of age, not so young anymore. Has always been stalked on a daily basis by his young and passionate, serious Dario, co-CFO. If everything goes according to plan, as soon as Moreno ends his mandate, he will be the new young CFO. So that Moreno will become his senior advisor, according and pursuant to the generation pact that we signed over 10 years ago. The idea is that once you turn 60, you become a senior advisor. We have Pietro. You all know him. He's 45, 46 years of age. In a few months' time, he will be moving into his new house here in Solomeo with his family.
As you know, we attach a lot of importance to young people settling down in our community. 40 years ago, the Solomeo hamlet had more or less 350 people. Today, 900. We like this healthy cultural growth of the territory. We believe that this really is the sap for the company and for its culture in the decades to come. Hopefully, the company can stay here at least for one century. Then we have Giuseppe, our 50-year-old serious, esteemed lawyer, who always checks that everything is according and pursuant to the legal, human, and behavioral regulations. You see, I really wanted to highlight once again the top-level staff that hopefully will keep running this company for the next 20, 30 years. Of course, this does not involve me too many years ahead. I don't know about you, Moreno, either.
We would like to structure the call as follows. You see, I think it's a very important call. First of all, I'll read out the highlights of the first quarter 2021 we are very, very happy with. Actually, also the first quarter 2020 was not bad at all for our company. I'd like to remind you that for our company, only the second quarter was very negative in 2020. The remaining three quarters were positive compared to the same time the previous year. I will give you our take on the world market, honestly very positive today. I will restate once again the highlights of 2021 and 2022.
We will also add 2023 to the equation because 2023 represents the closing year of the first half of the 10-year plan, 2019-2028, where we would like to take stock of the situation at the end of the halfway through in 2023. I'd like to devote some important time to the identity of the Brunello Cucinelli brand. I'll read out the figures now. All these figures I'm about to say are vis-à-vis 2020 and then 2019. In comparison to 2020, net revenues, EUR 164.6 million, + 5.1%, at current exchange rate, +7% in constant exchange rates. Performance by geography, Europe 3.9%, Italy - 3.6%, Americas - 4.8%, Asia + 28.9%. Performance per distribution channels, retail 11.5% +, wholesale + 0.4%. Now vis-à-vis March 2019. This is really fundamental figures for us.
First quarter 2021 reported an increase of 2.86% at current exchange rates and 3.3% at constant exchange rates. Powerful growth in Asia, 18%, sound performance in America, 4%, and Europe +1.5%. We called a limited drop in Italy, -17%, but we have many tourists. Both sales channels were up, with the retail increasing by 3.2% and wholesale up 2.2%. That's how I call these results. It is with a feeling of great positivity that we disclose our results achieved in the first quarter of this year, which we have defined as the year of rebalancing. It was a very, very positive quarter, which indicates a gradual return to normality in daily life with a strong desire for healthy planning.
The taste that the brand represents at this moment in time is currently generating a strong consensus that translates into important national awards that honor our company, our culture, our land, and all of us. The more than satisfying performance of spring collection sales and the sizable quantity of orders in the portfolio for autumn winter, the coming one, with the resulting excellent feedback of the world press on our collections, make us envisage a year 2021 with an excellent growth in turnover of between 15%-20%. We also see a solid increase in sales for the year 2022, namely around 10%. A couple of words on the world market. The Asian market performed very, very well, and for us, it accounts for 22% of revenues. You know nearly everything about this. What I find very interesting, Luca, is what Michael, our President in China, said.
The Chinese consider their country to be the safest in the world. Of course, obviously, perhaps this year we will not travel, thus it is very understandable what they say. America, very well, 32% for us and a lot of inspiration for the product too. Ramin was saying, a member of our board, he said that they too consider their country to be the safest. I have to say that in America you feel this great craving for physicality, with, on top of it, the desire to do many, many things. It is out of doubt that there will be an important return to movement and interaction. In the American destination places, a lot of events are being planned, great in multi-monobrand. We are ready for these Americans who will not travel much.
Europe is worth 45 points for us, and there's no doubt that there is a lot brewing on, because every day by day, we are waiting. A new beginning is just around the corner. What we say is that Eastern Europe, very, very well with Russia rising. In the rest of Europe, there is a great difference between the boutique located in the big cities, more tourists there, and those in the small, medium-sized cities and towns with local customers. The beautiful multi-brands have a lot of value. They work a lot with new system of local clients, because they send the goods to their home with private exclusive appointments. Honestly speaking, that this way of working is already very much well established in our stores too. We believe that it will be a very valid formula also for the time to come.
For example, if you don't have time, I can send you home a few garments that you can try on. Honestly, I am among those who think that my country is the safest, and as a matter of fact, we now prefer to travel in our own country. This is the natural instinct of human beings. Whoever you talk to, well, new projects are mentioned regarding at least the coming three years, and this really is very strongly felt, and this gives us a lot of energy. Company medium to short-term projects 2021, 2022, 2023, are basically all secured and also planned. Now I want to provide you with all the highlights of the coming years 2021, 2022, 2023. 2021 and 2022, you already know. We have added 2023 because it's April already, so that's the right way to proceed.
For 2021, we envisage revenues rising between 15% and 20% vis-à-vis 2020, and 3% - 7% vis-à-vis 2019, and EBITDA around 13% - 14%. For 2022 and 2023, we would like to grow of around 10% a year with a new balance in EBITDA around 17%, which means that at the end of 2023, you see, we will have achieved what we imagined envisaged in 2019. That's why there is a slight higher growth in the coming years. What we would like to do, well, investments wise, in commercial and production between 7% and 8% of revenues. Investments in communication, you see as usual, is always between 5.4% and 5.7%. Net financial position will improve. From next year onwards, we'd like to go back to our dividend policy of 50% of net income. We never achieved that. Maximum was 45%.
Now, in the coming 10 minutes, I'd like to talk about the product, because at the very end, you will understand why. First of all, because we have time. We already mentioned many things a month ago, but you see, I am really keen on the product because it is something that gives us the opportunity to envisage the coming 30, 40 years. This is going to be the 10th fiscal year since the listing in 2012, and we're very happy with the listing, I've always said that. The 44th year of our heritage, but actually we want to consider it the first year of the new cycle for the next 50 years.
At the end of 2020, we took stock of our situation, who we are, what we did in terms of from the economic, financial and sustainability point of view, but especially in terms of style and taste, because that's what matters the most. We said, what is the taste and identity of the Brunello Cucinelli brand? We analyzed all this after the end of the sales campaign Winter 2021, last March. At the beginning of the great restart, as if we were about to tackle a new cycle in mankind. Just one minute of your time to tell you where we started from with our brand. My dream as a young man was always that, since when I started, was that of identifying and matching my name to a very precise and clear taste. What did I want to do?
I wanted to do made in Italy clothing, high quality. I wanted to have luxury and exclusive products. Something that you never throw away, but you actually hand over, hand on to your future generations. High craftsmanship and quality and with a sporty, chic, luxury taste, and a no logo product too. No logo, because I did tell you the story of when I was modeling for Ellesse and the owner, this very fascinating Mr. Servadio, we struck up a friendship when we grew up. he had this number one company in 1982, Fila was their competitor, the important skiers.
he said, "Brunello, can you tell me why this product is not going so well, it's not doing so well?" I said to him, "You know, Leonardo, it's difficult to tell you, but you should have the courage to remove your logo," which was a half tennis ball, orange in color. Well, actually, I have always believed that if you can create a style, it will last for centuries, and style can be only created through clothing. Edward VIII, the Prince of Wales, after the First World War and after the 1918, 1919, the end of the Spanish flu, he started arguing that they should try to dress better, to rediscover the way of dressing up. still today, that kind of taste is recognizable and charming, even one century down the road.
When I started this business, I drew inspiration from the great names of worldwide clothing and fashion that were able to create a taste recognizable over time. That's precisely what I wanted. Just a few names of the very beginning. There was a Japanese genius of Yohji Yamamoto with the most fascinating shapes that I've ever met. Of course, I drew inspiration from the great Italian master, Giorgio Armani, and also the magnificent French Maison, Chanel. It's been there forever. More than anybody else, my source of inspiration was Ralph Lauren, who was able to create loads of beautiful products, but especially he was able to create a unique way of doing visual merchandising, and it was always a source of inspiration for me. I went to see him in 2019 in New York.
We exchanged pleasantries, and we took a picture together, and we were both very moved. He was the true inspiration for me. I could really list a very never-ending number of great fashion designers we drew inspiration from, because inspiration is a good thing, but copying is not something I like. Never. I'd like to thank all these fashion designers for their inspiration. In the past 10 year, I would say that things have gone pretty well. We have a very clear-cut image of our brand, and we have very important, strong ties with our places where we work and live, Solomeo. Hopefully, we can organize a dinner together. Solomeo, we have called it the Hamlet of Cashmere and Harmony. Well, you know a lot about Solomeo, but I hope that you can come to dinner, maybe end of June, July. Creativity.
I have always believed that you need to have a young team who has the courage to listen, especially what the market did not appreciate. Sometimes you say, you see I was too ahead and the market did not understand. You see, I like acting as a creative director of the team, and at the same time, I keep saying that I want to vouch for everything that comes out of the Solomeo factory, both in terms of product and style and communication and way of behavior. I have always maintained that as you get old, as you become elderly, you lose part of your creativity. I'm sure about that, especially the most, so to speak, edgy creativity, but that is vital to make your brand fascinating. What happens is that your taste strengthens, and you never lose that.
Still today, if I see something, I really like to voice my opinion on the taste. In the past few years we received from the international press and from our partners, really a plethora of acknowledgments regarding the recognizability of the brand. Of course, all this has always honored us and has given us the strength to keep believing in our style and taste and its contemporary character. In the last three or four years, these acknowledgments have basically turned into great recognitions. In 2018, the New York Times published a piece by the great fashion expert, Guy Trebay, a very demanding guy, but a very nice guy, who highlighted a comparison between me and my great master, Ralph Lauren. In the very same piece, he called us, Brunello Cucinelli, is the favorite brand of the coolest CEOs in the world.
This was a great, huge honor for us. In December 2019, GQ U.K. appointed me the second person among the top most elegant men in the world. You see, why are you saying that? Because I really wanted to talk about the recognizability of the brand. GQ U.K. wrote, "The tycoon of cashmere is the man that the billionaires of technology go to, like Jeff Bezos, when they need to understand how to dress well. It seems also when they need to understand how to behave as good citizens. It is not a surprise that the very same Cucinelli surprises us all." Last, in December 2020, Telegraph U.K. Yes, we should build a monument to the Americans and the British. They defined me the most stylish man of the last 10 years. Did you hear my pronunciation?
Because now, every day, two and a half hours of English lesson. By December, I will be speaking English. When I come to see you in December, London and New York, I hope I can really exchange a few words with you in English. The comment by the Telegraph was, the most stylish man of the last 10 years. Of course, this gives us a lot of strength. The journalist said, "You might not have heard yet about the titan of the Italian fashion house, Cucinelli, who runs his eponymous luxury brand from the very tiny hamlet he owns in Umbria, Solomeo. His approach to clothing has become one of the most influential over the years. The unrivaled quality and the concept of combining smart and casual are his pillars, and he left his mark all over the world of menswear.
Of course, it does help that the 67-year-old is the best spokesperson of his brand by embodying himself Italian elegance and refinement." We thank the Telegraph for that. What did we do? We have tried at different times to understand the reasons of these very important acknowledgments. Statistically speaking, we think that the fact that we do not believe in having a lot of carryovers and evergreen makes collections more contemporary. I say it once again, if I have my blue blazer on today, but it's not the same as two years ago. It is one centimeter and a half longer. I've always believed in this. We do not believe in evergreen. We are definitely on the lookout for something that is fresh and new, and this is the pure meaning of fashion.
We are very happy that we have associated the brand to Solomeo, and we believe that this has brought about a lot of charm for the brand. A few years ago, together, we were talking about the family foundation project to support the hamlet and the outskirts, the project for beauty. You are familiar with, when we tore down all those warehouses. Today, we believe that this is very much linked to the very big, highly debated topic of sustainability that we call living and working in harmony with creation. To support all this, a few days ago in London at Harrods, a beautiful department store, as you know, and they basically asked us to do that, and we were very pleased. We opened this space that we call soft furnishings or homewares with candles, pillows, tableware, just right adjacent to magnificent immortal brands, Hermès and Dior.
Unfortunately, I only had a chance to see a picture of this space, but I like it very much because I think that it really represents us to the end. Before coming to a conclusion, we would like to highlight once again the most important concept in the world, and I will keep telling you till the end. Marketing is important, but having a contemporary product is vital. To conclude, we were really keen on highlighting once again the value of the brand, because this is the first year of the next 50 years. We are very much convinced that the value of the brand represents something that offers great opportunities in the years to come. We can definitely envisage the manufacturing of eyewear, fragrances, homeware and many other things, because we have the brand. Today, we do have the brand, we think.
We should always remember that each and every one of these is a different kind of trade. We are working after a tense year, we are working with high concentration, focus and serenity. From the very beginning, we have had two doctors in the company, who basically test everybody coming from the outside and all the employees so that we could all work full time and in a better mood. In the company, we can feel an atmosphere of rebirth, maybe thinking that the worst is over. By the way, we have a really big desire to meet again, smile, shake our hands. How long has it been since we haven't laughed? I haven't been laughing for a year, maybe a few smiles, but not really good laughs. Thank you once again for listening to us, for your time.
We really wanted to walk you through this topic of products, because a month ago, we went into detail about our business. Thank you very much. Now we are open for questions. Whenever you want, you can call us, and hopefully we can meet again soon.
Chorus Call operator speaking. We will now start the Q&A session. Whoever wants to ask a question, please press star followed by one on your telephone. In order to exit to the booking list, please press star followed by two. Please ask your question using speaking into your microphone. Whoever wants to ask a question, please press star followed by one. First question from the Italian conference call, Flavio Cereda, Jefferies. Thank you, and good afternoon, Flavio. Here we are.
You're in England, so you're ahead of us. Three questions. In the first quarter, what percentage of your stores in Europe is closed or not normally running and operating normally? Secondly, I saw in the presentation that you changed the way you classified your revenues, if you can tell us what these changes are. The Harrods department store, I saw it, and it's very nice. Don't you have anything similar in mind elsewhere?
Well, I'll start from the last question. You see, this is a project that has been in the pipeline for a long time. They asked us and whether we had a good space, that's where we started there. The plan is to always have these corners both in our own stores and also the department stores. We really are happy with it because it really needs to represent the taste of the brand.
At the end of the day, maybe the turnover won't be large with cushions and pillows and candles, but it really helps the image and the identification of the brand, as Ralph Lauren told me. As far as the closed stores in Europe, I would say 25%-27% of the stores, because sometimes it was red zone, it was closed, then in orange zone. What I'm saying is that, you see, we have had some positive, unexpected results, compared to a year ago. From September, October, we have a new system that is working properly. The small stores in the second-tier cities like Hamburg, Düsseldorf and Berlin, for example. You see, local customers are very interesting, and I have to say that what is happening, in my view, is the desire, something that is felt in the U.S., as it was felt in China last year.
As soon as you open, you see people wanting the feel, the craving to enter the store. That's the way we did it, Flavio. We would like to have a U.S. market, 30%-32%, Europe, apart from Italy, and then Asian market. Just to give you three important geographies in the world. Of course, from there, you can see that in three or four years time, we would really like for the Asian market to reach 30%, 32%, and then maybe Europe can reach 40%. If you want some more detail, we can provide you with that. The only thing with it, we excluded Italy. Italy on paper is slightly weaker because we are dependent on tourism.
Thank you.
Thank you.
Next question from Francesca Di Pasquantonio, Deutsche Bank.
Good evening, Brunello.
Hello, Francesca. What a pleasure.
I hope you're all well.
Yes, in June I will be part of your meeting.
Yes, we will have to wait for next year if we want to have a physical meeting to meet in Paris. I have a question on the online business. Because it is very much highlighted in your press release, the fact that consumers want to go back into physical stores. The online is stable at 5%. My question is, do you think that this trend is happening, whereby the online, after the boom in 2020, is becoming less interesting for consumers?
Yes, it's a very good question. Of course, I am fascinated by the physical world. Last year, our online reached the 3% - 5%, a good increase. I am convinced that first of all, it is very important to showcase the product, the online website. Maybe I'm very much convinced that it is important to showcase the product, to have a proper website. I think that the online is still going well, because especially in Europe, there's no way you can travel. I'm convinced that you can feel it in America, the great desire of you see they want the stores, they're opened, they're full of traffic. There is the need for the physical store. What I say, Francesca, is when you buy something online, now, of course, I'm talking about maybe you see, who can tell you how these baby coats, whether it fits you or not? Maybe your husband, but who else?
Whereas if I buy a beautiful suit, I want maybe a salesperson to tell me, "Well, maybe the pinstripe is better for you." I always say, I went to buy a watch, a wristwatch, and I was sold three. They were so good. You see, the sales assistant was so good and said, "Well, how can you not buy a Vacheron, plus this and that?" I bought three of them. I ended up buying three. I repeat what Jeff Bezos said at our place, in our home. You see, I cannot create any charm with my parcel. I offer you a service, but no emotions.
You see, whereas clothing is emotion, but you really need to engage with someone. Someone needs to tell you how that skirt suits you, and maybe they advise you that you should maybe match to a specific blouse. It's very important for the product and for sales too, because it has been an important year for business for everybody online. I still am a very firm believer in brick-and-mortar stores.
A follow-up question, if I may.
Yes, we have all the time in the world.
Your opinion on how you see the wholesale distribution world nowadays. Sell in, sell out.
Well, as you know, I have always been fascinated by the wholesale. The other day, we had a wonderful call with the CEO of Saks in New York with the whole team. They have wonderful projects in the pipeline for that store. They want to move even higher up in the ladder of luxury.
They want us to work together in the visual merchandising and also they want us to train their sales assistants so that they become the brand ambassadors, and I believe this very much. Lately, Francesca, you see, we have actually realized the great value of the multi-brand in the single individual cities. This is source of inspiration. You see, I am in love of how they display their goods. I take a look at then on how they basically place us close to or adjacent to whom. When they decide to place you beside a specific brand. Well, you see, if your brand is performing well, then you are flanked by the best brands. You can really perceive the value of your brand just by seeing what they place it beside. I think that this is a very important channel.
Thank you.
Thank you. You see, France, I am fascinated. We must be. These governments have given us a lot of money, made a lot of money available. The banks are very sound. GDP in India, 12%, we in Europe, 5%. We cannot not envisage going towards very important coming years. Of course, France, we need contemporary products, and nobody will convince me of the opposite. If your product is not good enough, your marketing can be great, but your product and your brand will be doomed.
Yes. Keep it up then.
Well, yes, hopefully we will. In the toughest year, we designed the best collections in our history, and you might ask why. You see, it is true that last year we had 31 million of unsold goods, but this idea of not having old garments, evergreen or what was left at the store, the fact of showcasing new products, this really has translated into boost for our taste. When you start reusing last year fabrics, last year colors, it goes to the detriment of creativity. I have always told you about my friends. I'd just like to tell you about this. There was an exceptional entrepreneur. He bought a boat of Shetland wool. He said, "It was a bargain, Brunello. A whole shipload of Shetland, half the price." I said, "You see, Mr. Fajoli, you are such a loving person, but you see, nobody wants Shetland because it pricks your skin.
Are you sure?" "Yes, I'm sure." You won't believe it, but that shipload of Shetland meant really the end of his business model. You see, we can't go against the market. I'm sure about that. Therefore, the EUR 31 million of unsold goods, I would like to consider it a good choice, what we did with the excess inventory for the modernity of the product. Not so much for the income statement, obviously. Well, as a matter of fact, it has been a unique year, definitely. Well, in 43 years, we said this is the only year that we have had a -10%. If this year, we achieve 15%-20%, we will have caught up. the 10-year plan is still the same. All in all, I think that last year in April, May, we didn't think that it would end up so well for us.
We are really coming to an end of this pandemic, and especially with the vaccines.
Yes. You see, in this vaccine hub that we have, the general said, "We will send you a lot of vaccines." In that case, we will work at night too, because, you see, just having one day more of vaccines, it means life saved and business. Thank you, Francesca.
Thank you.
Next question, Andrea Randone, Intermonte.
Thank you. Good evening, Brunello and everybody. I have two curiosities. The first one has to do with this positive restart in the United States. If you can give us a bit more details. For example, which cities, if it's more menswear or womenswear, and if you have changed your approach vis-a-vis the customers. This is the first question. The second one is more technical. You have a good business with Russia. There has been a lot of turbulence in the exchange rate. I'd like to know whether you adjusted the prices accordingly.
I'll start from the last. As usual, when we come out with our collections in January and July, we set the exchange rates. Every six months. First of all, because we have half wholesale and half retail, so we can't change prices halfway through. Otherwise, the wholesale retailers would not understand. They pay a bit more, but we have fixed exchange rates. As far as the U.S. is concerned, it is not true that it's been two weeks. I would say five weeks, Luca, right? Already in early March, there was. It all started from the resort to then also in Miami, New York. They say that in New York, September the 1st, 95% of the inhabitants will have gone back to their cities.
If you allow me, we see there's some sort of widespread phenomenon. Do you remember last year when the Chinese reopened at the end of April? There was that time of craving, and we can perceive this in America now, and in Europe too, even though stores are closed. You see that I can send you the goods home. You can go with the private appointment. Really, there is a lot of positivity. Men and women, well, I would say both menswear and womenswear. We are really reaping success for womenswear for all the things that we were saying about the brand. For example, what Ramin was saying in the board meeting, there is the need to dress well, chic, and modern for every kind of event and no more loungewear because we are fed up with it.
Now we are starting to wear maybe a double-breasted blazer with denim, and it's special. You envisage how you are going out in the summer. It is very positive. Maybe also because last year, I wouldn't have expected Yes, some industries have lost a lot. You see, when they say that fashion was hardly very hard hit, I don't think so. Some other industries lost much more. We are much more in positive territory than other industries and segments, but there is a desire. You see, as we can't wait ourselves to go to the restaurants. Have you maybe read the interview two, three days ago with the president of Pfizer, the Greek Jewish guy? He basically released an interview where he said "Why does Pfizer say those things?" Of course, they believe in it. They said, "In May, you will be flooded by vaccines.
In September, we will be out of the tunnel." I'm really very confident.
Thank you. Thank you very much.
Thank you. You will see. We will have a dinner party. I'm sure about that.
Thank you.
Next question, Guido Lucarelli, BNP Paribas.
Good evening, Brunello.
Guido.
The first question on the retail, up 3% on 2019. Can you give us a few indications in terms of nationalities? Which nationalities are above or below this value? Who is doing better or worse? The second question, retail. What was the trend in your customer mix from the beginning of the pandemic, in particular, the tourist expenditure? Are there any consumers that you were able to maintain even though they couldn't travel? Finally, about online, you spoke many times about the importance of wholesale for your company. You're talking about physical wholesale. Do you share the same view on online wholesale?
For example, a model like Farfetch could be more advantageous.
I'll start from the first question. Generally speaking, as we saw there, except for maybe Paris, London and Milan are struggling the most. They have adopted this system, although London is starting again. There is a general positivity in Asia, Europe, America. Russia was positive the whole year. As far as the retail, this is a bit more complicated. Well, we obviously have a pretty high ticket, but they are all in the lookout for special garments, that's for sure. The most beautiful items are really the most sold, regardless of the price. Of course, it does not mean that you can attach any price you want to them, but it's very interesting.
As to the online, as I was saying to Flavio, we believe in it. I also believe in online wholesale, like we do for our online. The physical store will really play a very high role for the very same reason. Who advises you if you shop online? Who do you compare to? When I was young, when I was 30 or so, I went to this great store in New York, a Ralph Lauren store, and there were three or four sales assistants. They were so good. You see, I remember going back home with my suitcases full, and I was in fashion. Look at this combined with that. Can online give you that? No. Online, you need people suggesting things for you. I'm always very much convinced about the importance of the physical store.
You spoke about Paris, London, and Milan struggling. I imagine because there's a lack of tourists.
Yes, these are the cities that struggle the most because they usually have a lot of tourists. Well, I find it very interesting, you see local consumers. You see, I believe that it will be a year when everybody will shop locally, because otherwise, how can China grow 50%? Because Americans go on holiday in America. The Chinese say that China is the safest place, and we Europeans, I will go on holiday in Italy, truth be told. I feel the safest here. Also, even if I go to somewhere where everybody's vaccinated, this is the way human beings are. We are so much craving for shopping, but this is true for the Chinese, Europeans, everybody. It is a shared feeling. We want to go back to life.
Thank you very much.
Thank you.
Next question, Paola Carboni, Equita.
Good evening, Brunello and everybody. Here we are. One question on the channel mix, just to understand the performance of wholesale in the first quarter. I compared it with the guidance a few months ago on the very positive order collection performance. Was there maybe a postponement in terms of delivery so that very positive is flat now, but will there be an acceleration?
Paola, it is not flat. It is not flat because you have to look at the Nordstrom and Dubai conversion. You see? It is a very good result, if you consider the conversion. The channel mix on the year, well, we enjoyed a great fall-winter season too. We have orders in-house. Pietro can give you more detail on this. If you basically exclude Nordstrom and Dubai, you will see the wholesale performed very well this season.
Thank you.
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Thank you. Thank you very much. Whatever you need, just call us if you have any more questions, and good luck. We are restarting. Thank you and goodbye.
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