Bottega Veneta ends 2014 with double-digit increase
today Feb 19, 2015
Bottega Veneta made progress once more in 2014, despite a slowdown at the end. Kering’s second largest and most profitable luxury company generated a turnover of 1.131 billion euros last year, up 11.3% compared to the previous year (+12.6% at constant exchange rates), the company announced in the publication of its annual results.
Its sales slowed down sharply, however, in the fourth quarter, rising by 6.8% on a comparable basis as compared to +13.4% one year earlier (+9.6% at current exchange rates).
The brand suffered from demonstrations in Hong Kong, as Asia-Pacific makes up 40% of its total turnover, with sales increasing by 10% in 2014 in the region.
From a geographical point of view, Bottega Veneta continued to maintain a good balance between Europe, accounting for 29% of its turnover, where sales were up 10%, and North America, which makes up 13%, where sales increased by 9%. In Japan, which accounts for 14% of the brand’s turnover, sales jumped by 17%.
In 2014, its recurring operating income (Ebit) was 357 million euros, rising 8% from 2013, with a margin of 31.6%. Its gross operating profit (Ebitda), meanwhile, amounted to 389 million euros (+9.6%).
These results were supported primarily by sales through its retail channel, which increased by 10.8% last year on a comparable basis. Its direct distribution network, which represents about 80% of the brand’s total sales, now consists of 236 directly managed stores as compared with 221 in late 2013.
After significant retail expansion accompanied by heavy investment in 2013, Bottega Veneta opened 15 new stores last year in both emerging and mature markets countries, including its first openings in Vienna and Boston.
As for its wholesale channel, the brand saw sales jump by 20%. Leather goods, in particular its famous woven leather, which continues to be a sales engine for the brand, accounted for 87% of total revenue, with growth of 14.3%.
Founded in 1966, the leather goods brand, which is headquartered in Vicenza, in the Veneto region of Italy, has enjoyed a meteoric rise since its acquisition in 2001 by Kering and the appointment in the same year of German designer Tomas Maier as its artistic director.
With its new CEO Carlo Alberto Beretta having taken up his post in January, the brand intends to continue on track, maintaining a focus on excellence and exclusivity, while continuing forward under Tomas Maier’s leadership.
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