Kering highlights Bottega Veneta’s stellar first half

25 Jul 2024

While Kering's overall results were shadowed by Gucci’s disappointing performance, Bottega Veneta shone brightly among its promising assets. This includes the Eyewear & Corporate division, now also encompassing beauty, which surged 23% by June 30, 2024, jewelers Boucheron and Pomellato with double-digit growth, and Balenciaga's continued recovery. Bottega Veneta itself delivered a “record-breaking first half,” affirming the strategy initiated years ago focused on high craftsmanship, creativity, and exclusivity. The brand is expected to maintain its momentum with a series of new projects.

This strategy, initiated by designer Daniel Lee in 2018 and strengthened under the stewardship of creative director Matthieu Blazy who took over in 2022, has positioned the brand well amidst a turbulent market. Although Bottega Veneta experienced a sales dip at the end of 2023 and the beginning of 2024, it rebounded in the second quarter with a 2% increase (4% on a comparable basis). Consequently, its six-month revenue remained stable at €836 million, marking a 3% rise on a comparable basis. The only downside was a 28% drop in current operating income over the period, "due to significant investments in communication and highly exclusive clienteling events."

“Bottega Veneta is reaping the benefits of the desirability it has fostered in the high-end segment. Retail sales in our own network have been the main growth driver, up 8% on a comparable basis for the semester and 7% in the second quarter. This strong performance is attributed to the positive impact of the product mix and the success of higher-value offerings," explained Kering’s CFO, Armelle Poulou, during a conference call with analysts.

The retail channel, which accounts for 84% of the brand's total sales, was particularly boosted by double-digit increases in Western Europe and North America and strong momentum in the Middle East. "In Asia-Pacific, where it still has significant room to grow and enhance its visibility, Bottega Veneta has been resilient," she noted. However, wholesale sales, affected by the ongoing rationalization of the network through a reduction in multi-brand dealers, saw a 19% decline (-13% in the second quarter).