April 11, 2013

Italian success stories. Versace, Bottega Veneta, Prada

Prada

Versace is steadily heading towards beating its EUR 500 million sales goal one year earlier that forecasted, meaning, according to CEO Gian Giacomo Ferraris, that in the second half of the year they should have ’’a scenario of possibilities’’. What exactly is it that he is making reference to is, of course, at Versace SpA’s discretion.

And the numbers seem to be offering generous room for manoeuvre to the Italian house. During the first trimester of 2012, total sales have been up more than 20%, and the highest performing markets for the same indicator have been the United States, on an upward trend of 46%, Asia, up 38%, and Europe, with 7%. Revenue topped EUR 408.7 million, while this year the profit margin is expected to increase significantly.

The steady rhythm at which new Versace boutiques have been opened has prompted another hike in own stores sales, of 39%, and China, Brazil, the US, Turkey and South Korea are awaiting new Versace openings. Scandinavia, Australia and China are being taken into account for the expansion of the online store’s area of activity.

Bottega Veneta inhabits a world of luxury unscathed by the crisis and operates in Bottega Veneta Italy, where employment increases by a third each year. Clients crave to pay more for absolute exclusivism, and it takes 15 years for an artisan to master the skill of weaving a cabat, the utmost symbol of BV.

It seems to be an own universe interacting with our world only in a perfectly guided and thought through manner, resulting in EUR 1 billion annual earnings. It is, in fact, all about immense work and talent managed with a visionarism only tempered by an attentful availability to observe the clients’ wishes and behaviour but, also, with great business flair, of scrutinizing the trials and errors Bottega Veneta is only leaving to the competition.

Prada has achieved an overtaking of the analysts’ expectations, netting incomes of EUR 625.7 million – an increase of no less than 45% – over the forecasted EUR 618 million.

The number of own stores is up 19%, now reaching 461, and Cantor Fitzgerald is valuing the solid structural development strategy that the company is tenaciously fostering, while seeing prospects of consistent opportunity on the Chinese market.

Luca Peyrano, from the London Stock Exchange, is associating the success of Italian luxury brands with the perspective of new IPOs at the Milan stock exchange, the beneficiary of a true premium listings portfolio. Mario Ortelli, from Sanford C. Bernstein, appreciates, also for Bloomberg, that the world luxury market is to expand a 6 to 7% for the following 5 years. Correlating data and trajectories, a possible, maybe even obvious conclusion, is that Italy has only to learn from the Italians.

 

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Photo source: Prada