The UK 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 UK 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 202.