The º£½ÇÊÓƵ division of the esteemed Italian luxury fashion brand Bottega Veneta has bounced back into profitability in 2023, despite the cost-of-living crisis impacting its sales figures.
Headquartered in West Sussex, the company has recorded a pre-tax profit of £336,007 for the latest financial year, as per the accounts recently submitted to Companies House, as reported by .
This marks a turnaround from a pre-tax loss of £144,274 reported in 2022, following a pre-tax profit of £1.1 million in 2021.
Moreover, the accounts reveal a downturn in turnover from £55.1 million to £50.6 million over the past financial year.
Bottega Veneta, established in 1966 with its main base in Milan, falls under the Kering umbrella, which also encompasses high-profile labels such as Yves Saint Laurent, Gucci, Balenciaga, Brioni, Creed, and Alexander McQueen.
The brand's customer spending has been affected by rising interest rates and inflation.
A board-approved statement disclosed: "The company has experienced an 8.9 per cent year on year decrease in third party sales during 2023."
Attributing the decline to economic factors, the statement explained: "This decrease is largely attributable to high º£½ÇÊÓƵ interest rates and inflation which has significantly increased individual's spending on necessities and reduced their propensity to spend on luxury products."
Highlighting the previous year's performance, the statement added: "The company experienced a 56 per cent increase in third party sales in 2022 as a result of a strong rebound following the Covid-19 pandemic."
The º£½ÇÊÓƵ division of Bottega Veneta has reported a pre-tax profit of £79,230 for the year, a significant decrease from the £370,533 it achieved in 2022. This comes despite its fellow Kering brand Brioni seeing a cut in profits in 2023, even with sales at Harrods contributing to its overall turnover.
The London-based division's newly filed accounts with Companies House also indicate a slight increase in turnover from £12.1m to £12.3m over the same period.
