Bottega Veneta returns to the black amid interest rate and inflation woes

The UK arm of Italian luxury fashion house Bottega Veneta returned to the black in 2023 despite the cot-of-living crisis cutting into its sales.

The West Sussex-headquartered division has posted a pre-tax profit of £336,007 for its latest financial year, according to newly-filed accounts with Companies House.

The total comes after the business reported a pre-tax loss of £144,274 for 2022.

That loss came after the UK arm of Bottega Veneta achieved a pre-tax profit of £1.1m in 2021.

The new results also show that the brand’s turnover fell from £55.1m to £50.6m over its latest financial year.

Bottega Veneta, which was founded in 1966 and headquartered in Milan, is owned by Kering, whose brands also include Yves Saint Laurent, Gucci, Balenciaga, Brioni, Creed and Alexander McQueen.

Interest rates and inflation hit Bottega Veneta customer spending

A statement signed off by the board said: “The company has experienced an 8.9 per cent year on year decrease in third party sales during 2023.

“This decrease is largely attributable to high UK interest rates and inflation which has significantly increased individual’s spending on necessities and reduced their propensity to spend on luxury products.

“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 results for the UK arm of Bottega Veneta come after profit at its fellow Kering brand Brioni was slashed in 2023 despite its sales at Harrods helping to boost its overall turnover.

The London-headquartered division has posted a pre-tax profit of £79,230 for the 12 months, down from the £370,533 it achieved in 2022.

Newly-filed accounts with Companies House also show that its turnover edged up from £12.1m to £12.3m over the same period.