Brioni: Harrods sales fail to stop cost-of-living crisis slashing profit

Profit at the UK arm of Italian menswear luxury fashion house 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.

Brioni, which was founded in 1945 and headquartered in Rome, is owned by Kering, whose brands also include Yves Saint Laurent, Gucci, Balenciaga, Bottega Veneta, Creed and Alexander McQueen.

Sales at Brioni outlet store fall as cost-of-living crisis bites

A statement signed off by the board said: “Brioni UK has experienced a slight 1.1 per cent increase in turnover in 2023, against a high base in 2022.

“The company experienced an increase in turnover, in 2022, as a result of a strong rebound following the Covid-19 pandemic.

“In 2023, sales generated from the Harrods London concession store have increased, offsetting a decrease in sales generated from the Bruton Street flagship store, which generated a large proportion of the higher sales in 2022.

“Revenue generated from the Bicester outlet store is down in 2023, due to this discounted store being more susceptible to the impact of the cost-of-living crisis”.

On its future, Brioni added: “To achieve its long-term vision, the Kering group invests in the development of the brands within the group (the houses), so that they continuously strengthen their desirability and the exclusivity of their distribution, strike a perfect balance between creative innovation and timeliness and achieve the highest standards in terms of quality, sustainability and experience for their customers.

“In an environment of ongoing economic and geopolitical uncertainty in the near term, the group will continue to execute on its strategy and vision, in pursuit of two key ambitions: to maintain a trajectory of profitable growth resulting in high levels of cash flow generation and return on capital employed, and to confirm its status as one of the most influential groups in the luxury industry.”