Bottega Veneta Denies Destocking Actions, Emphasizes Exclusivity Stance
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MILAN — Bottega Veneta is speaking up to emphasize its stance and determination to be equated with luxury, Made in Italy craftsmanship and exclusive positioning: “Bottega Veneta has not engaged in any destocking action of products designed by Daniel Lee.”
Responding to an article published on Wednesday about products designed by the former creative director appearing on the website of discount retailer TK Maxx, a spokesman for the brand said in a statement sent to WWD on Friday that: “Quite on the contrary, being extremely proud of all collections, Bottega Veneta has established a high-end value positioning and selective distribution strategy. Resellers such as TK Maxx are not supplied by us and we are actively investigating the genuineness and origin of the products sold by TK Maxx.”
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TK Maxx is the European version of T.J. Maxx in the U.S. and it has been putting up for sale more than 125 products from Lee’s first two seasons at the Italian luxury house, ranging from ready-to-wear and footwear to accessories, with prices slashed by as much as 79 percent.
“Bottega Veneta will continue to highlight its iconicity, exclusivity and timelessness and work with partners that preserve the value of our creativity and craftsmanship,” concluded the statement.
In a sudden and unexpected announcement last November, parent company Kering said Lee, who was tapped as creative director in July 2018, was leaving the brand.
Shortly after Lee’s departure, design director Matthieu Blazy was promoted to the top creative director’s role, signaling continuity at the brand. Blazy will present his first collection for Bottega Veneta in February.
During his tenure Lee energized the label, which is being helmed by chief executive officer Leo Rongone.
On Thursday, Bernstein issued a “Global Luxury Goods: The October 2021 ‘price discipline’ index – Bottega Veneta’s clean slate,” and senior research analyst Luca Solca stated that “Kering’s brands –Bottega Veneta, Gucci and Saint Laurent – continue their almost flawless pricing discipline. This suggests that the company is tightening the distribution grip of its brands with the arrival of the highly anticipated fall/winter collections in-store. For the first time since we started tracking pricing discipline the best performing brand – Bottega Veneta – has no items sold at a discount.”
The index also states that Bottega Veneta “ranks first in the off-price channel, showing that their full-price discipline has a direct positive effect on the remaining distribution channels.”
In 2020, Bottega Veneta was the only Kering brand for which breakout figures are disclosed to post growth, with sales up 4.8 percent in comparable terms despite the impact of the coronavirus pandemic. In the third quarter of 2021, organic revenues at the house rose 8.9 percent year-over-year.
“Bottega Veneta continues to do a great job attracting new clients, with sales to younger generations growing faster than the average. At the same time, it is strengthening its appeal with existing customers, resulting in a very well-balanced client mix,” Jean-Marc Duplaix, chief financial officer of Kering, said at the time.
“Bottega Veneta is demonstrating quarter after quarter the success of our strategy as it expands the house’s territory, tightens its exclusivity and turns into a truly global luxury brand,” he added.
Last year the brand represented 9 percent of Kering’s sales. Leather goods accounted for 74 percent of the total, followed by shoes with 16 percent and rtw representing only 7 percent of revenues.
Blazy, who joined the company in 2020, is said to share a similar sense of style with Lee and is expected to build on his predecessor’s strong take on the storied label, which has helped fuel Bottega Veneta’s sales and increase its reach, revamping it with coveted accessories, from the Pouch bag to the Lido sandals.
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