02.03.2020

Group achieved a turnover of 212 million euros in 2019

bugatti Holding Brinkmann optimistic about the future

Herford. In 2019, the clothing industry's turnover declined in general. This trend also had an impact on the bugatti Holding Brinkmann GmbH & Co. KG annual results. It achieved a turnover of 212 million euros, which is 3.9 percent less than in 2018. "It has been a difficult year. Some of our brands' key sales drivers did not develop as expected. However, we have changed our approach in numerous areas and made decisions that will have a positive effect in 2020," says managing partner Wolfgang Brinkmann, viewing the future with optimism.

In 2019, changed consumer behaviours, extreme weather events, a dynamic competitive environment and political circumstances all impacted on the fashion industry. These framework conditions resulted in major challenges for the outdoor fashion business, a segment that is key to the core brand bugatti. In this area, the company failed to achieve its targets. The areas knitwear, wovens and shirts as well as womenswear, on the other hand, developed positively. Womenswear was successfully developed further towards a coordinates collection with matching pieces in terms of colour and style. The collection achieved double-digit growth. The number of the brand's stores and soft shops has increased both nationally and internationally; it has therefore fully met its strategic goals. With an increase of 15 percent, the retail turnover developed extremely well, in contrast to the overall trend in the industry. This trend now contributes 16 percent to the overall turnover.

bugatti continues to benefit from its licensing business with fourteen partners; the turnover figures remained at a consistently high level. The licensing turnover figures are not included in the overall turnover. Footwear was again the strongest licensing business product; bags were also very successful. The expansion in the womenswear area encompasses a closer collaboration with the licensing partners.

Pikeur riding breeches were less in demand than last year. However, all in all, they managed to stay at the top in the saturated and fiercely competitive equestrian clothing market. The product group Eskadron confirmed its market leadership in the area of textile equestrian equipment. Eskadron is now the most important retail shop and online store supplier worldwide. Wilvorst has successfully established its "Green Wedding" range of sustainable wedding suits on the market and increased its turnover in this segment.

Domestic business

The development of the Holding's domestic business was stable in 2019. On the domestic market, the bugatti brand benefited from the retail business. In this area, it increased its turnover by 15 percent, in contrast to the general trend in the industry. Five more stores have been added to the already existing nine stores at the North and Baltic Sea coasts. In the womenswear area, several soft shops have been established in retail stores. bugatti therefore now has a total of 327 store and retail spaces throughout Germany. "We continued with the selective growth in locations that attract a high number of tourists, because were are successful wherever we are in control of the range, presentation and sales," emphasises managing partner Klaus Brinkmann.

The Eduard Dressler business in Germany declined slightly, although this was due to strategic adjustments with regard to the overall financial development in the retail sector.

Export business

In 2019, the export share remained stable at 43 percent. bugatti Holding exported its brands to over 65 countries worldwide. The most important export markets were again Italy, Austria, Russia, France, Ireland and the Benelux countries.

In 2019, the bugatti brand opened 29 international stores and soft shops. This brings the total of the worldwide bugatti stores to 39, and the total of soft shops to more than 600. "With the shops and stores, we are increasing the brand's presence on the international level. They make a significant contribution to the export turnover," explains Julius Brinkmann, who took over the responsibility for the export business from his father Klaus Brinkmann in 2018. The bugatti lifestyle concept is also very well received on the export markets; particularly the product groups shirts, trousers and knitwear have developed correspondingly well internationally.

As in 2018, Brexit has led to uncertainties on the British market. "In 2019, this situation mainly had a negative impact on the turnover of Pikeur and Wilvorst," says Wolfgang Brinkmann. With almost 44 percent, the Pikeur export share nevertheless reached an extremely high level again in 2019. The strongest countries were Great Britain, the Benelux countries, Sweden, Switzerland, Austria and North America. The strongest product groups in Pikeur's clothing segment continue to be riding breeches and jackets.

Wilvorst managed to successfully defend its leading position on the special occasion menswear market in Austria and Switzerland.

In the Netherlands, one of the most important export markets, as well as Austria and Switzerland, Eduard Dressler achieved thoroughly positive export results. The figures declined slightly in Great Britain, Russia and the Ukraine. In all other markets, they developed on budget.

Investments

In the past two years, the group of companies invested 16.6 million euros in its future viability. One focus area was the construction of a new logistics centre for Pikeur in Werther, which was completed in late 2019. The building extends over several floors and offers more than 17,000 square metres of warehouse space, enough for all finished pieces. An average of up to 1,200 parcels a day can now be dispatched from Werther to over 65 countries. In the course of its digitalisation, the company will switch to a new warehouse management system from May 2020 onwards, and the goods will be picked paperless by the semi-automated conveyor system, which facilitates quicker delivery during seasonal peak times.

The group of companies has also invested heavily in state-of-the-art warehouse management equipment at the Goslar site and into the digitalisation of the company. Other investment areas included the acquisition of trade mark rights and the expansion of the bugatti brand retail business.

Responsibility

The issue of social, ecological and corporate responsibility is becoming increasingly important in society, and also in the fashion industry. Accordingly, the group of companies has developed a customised comprehensive sustainability strategy together with its partner hessnatur. "We see the issue of sustainability as a value driver for our Holding's brands and intend to become proactively involved in this area," emphasises Julius Brinkmann. Specifically, a sustainability project has now been initiated together with the hessnatur Stiftung that aims to reorganise the waste management of a supplier in Bosnia with the circular economy principle in mind to make it possible for the company to meet the stringent requirements of the Business Social Compliance Initiative (BSCI) standard.

Sustainability is also an issue in the collections. From the autumn/winter 2020/2021 season onwards, bugatti will no longer use any real fur or real down feathers. 

Wilvorst is the first special occasion menswear manufacturer to offer a sustainable wedding suit: the "Green Wedding" capsule collection, which places particular importance on fairness, sustainability and considering the future. The focus is on sustainable materials from Germany and Italy, on AZO-free dyes, on fair manufacture in Germany and the EU, on keeping transport distances to a minimum, and on timeless cuts for a long product life cycle. Other factors are biodegradable hangers or labels with flower seeds, for example.

Brands owned by the group of companies

The brands owned by the group of companies cover a wide spectrum, which makes it less dependent on the development of individual segments. It covers the mid- to high price segment with the brands bugatti and Eduard Dressler. bugatti is a lifestyle brand that not only offers mens- and womenswear but also a wide range of accessories as well as home textiles under license. Eduard Dressler specialises in particularly sophisticated menswear. The long-established brand has begun to update its style, more towards smart casual, which has made it increasingly popular. Pikeur and Wilvorst are market leaders in the niche segments equestrian clothing or special occasion menswear, respectively.

Employees

bugatti Holding Brinkmann employs a total of 961 people, including 45 vocational trainees. Of these, 353 work at the company's head office in Herford.

Outlook

The group of companies made some important decisions in 2019. These include the closure of the production facilities for equestrian clothing in Uchte, Lower Saxony, a reduction of the its held on stock and the clarification of trade mark issues. "We will already notice the positive impact of these steps in 2020," says a confident Wolfgang Brinkmann.

The bugatti brand will continue to pursue its international growth strategy. In 2020, it plans to open three stores in Russia. "In addition, we are pushing ahead with the development in the eCommerce area in order to unlock new growth potential for us and to continue to expand the digital brand staging at the national and international level," says managing partner Markus Brinkmann, who has been responsible for the company's IT since 2018.

The group of companies will continue to invest into the brand in 2020 with a major print, online and social media channel campaign aimed at highlighting the brand's diversity and product expertise. Eduard Dressler will continue its successful collaboration with the well-known jazz musician and photographer Till Brönner. Pikeur continues to put its faith in its outfitting supplier agreement with the German Olympic equestrian sports committee (DOKR) in Warendorf, which runs until 2024.

"The fashion shows at the beginning of the year and the pre-orders fill us with optimism for 2020," emphasise the brothers Wolfgang and Klaus Brinkmann.

The group of companies consists of: bugatti GmbH (Herford), bugatti Retail GmbH (Herford), Dressler Bekleidungswerke Brinkmann GmbH & Co. KG (Großostheim), Wilvorst Herrenmoden GmbH (Northeim), Pikeur Reitmoden Brinkmann GmbH & Co. KG (Werther). The bugatti Holding Brinkmann's managing partners are the brothers Wolfgang (69) and Klaus Brinkmann (67), the second generation of the family to head the company, as well as their sons Markus (39) and Julius (36).

Herford, 02 March 2020

Press office:
bugatti Holding Brinkmann GmbH & Co. KG
Public Relations
Tanja Bobel
Hansastr. 55
32049 Herford
Germany

Ph.: + 49 52 21 - 88 41 27
Fax: + 49 52 21 - 88 42 25
Email: [email protected]remove-this.bugatti.de
www.bugatti-fashion.com

02.03.2020

Group achieved a turnover of 212 million euros in 2019

< Gruppe erzielt 2019 einen Umsatz von 212 Millionen Euro

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Group achieved a turnover of 212 million euros in 2019

bugatti Holding Brinkmann optimistic about the future


Herford. In 2019, the clothing industry's turnover declined in general. This trend also had an impact on the bugatti Holding Brinkmann GmbH & Co. KG annual results. It achieved a turnover of 212 million euros, which is 3.9 percent less than in 2018. "It has been a difficult year. Some of our brands' key sales drivers did not develop as expected. However, we have changed our approach in numerous areas and made decisions that will have a positive effect in 2020," says managing partner Wolfgang Brinkmann, viewing the future with optimism.

In 2019, changed consumer behaviours, extreme weather events, a dynamic competitive environment and political circumstances all impacted on the fashion industry. These framework conditions resulted in major challenges for the outdoor fashion business, a segment that is key to the core brand bugatti. In this area, the company failed to achieve its targets. The areas knitwear, wovens and shirts as well as womenswear, on the other hand, developed positively. Womenswear was successfully developed further towards a coordinates collection with matching pieces in terms of colour and style. The collection achieved double-digit growth. The number of the brand's stores and soft shops has increased both nationally and internationally; it has therefore fully met its strategic goals. With an increase of 15 percent, the retail turnover developed extremely well, in contrast to the overall trend in the industry. This trend now contributes 16 percent to the overall turnover.

bugatti continues to benefit from its licensing business with fourteen partners; the turnover figures remained at a consistently high level. The licensing turnover figures are not included in the overall turnover. Footwear was again the strongest licensing business product; bags were also very successful. The expansion in the womenswear area encompasses a closer collaboration with the licensing partners.

Pikeur riding breeches were less in demand than last year. However, all in all, they managed to stay at the top in the saturated and fiercely competitive equestrian clothing market. The product group Eskadron confirmed its market leadership in the area of textile equestrian equipment. Eskadron is now the most important retail shop and online store supplier worldwide. Wilvorst has successfully established its "Green Wedding" range of sustainable wedding suits on the market and increased its turnover in this segment.

Domestic business

The development of the Holding's domestic business was stable in 2019. On the domestic market, the bugatti brand benefited from the retail business. In this area, it increased its turnover by 15 percent, in contrast to the general trend in the industry. Five more stores have been added to the already existing nine stores at the North and Baltic Sea coasts. In the womenswear area, several soft shops have been established in retail stores. bugatti therefore now has a total of 327 store and retail spaces throughout Germany. "We continued with the selective growth in locations that attract a high number of tourists, because were are successful wherever we are in control of the range, presentation and sales," emphasises managing partner Klaus Brinkmann.

The Eduard Dressler business in Germany declined slightly, although this was due to strategic adjustments with regard to the overall financial development in the retail sector.

Export business

In 2019, the export share remained stable at 43 percent. bugatti Holding exported its brands to over 65 countries worldwide. The most important export markets were again Italy, Austria, Russia, France, Ireland and the Benelux countries.

In 2019, the bugatti brand opened 29 international stores and soft shops. This brings the total of the worldwide bugatti stores to 39, and the total of soft shops to more than 600. "With the shops and stores, we are increasing the brand's presence on the international level. They make a significant contribution to the export turnover," explains Julius Brinkmann, who took over the responsibility for the export business from his father Klaus Brinkmann in 2018. The bugatti lifestyle concept is also very well received on the export markets; particularly the product groups shirts, trousers and knitwear have developed correspondingly well internationally.

As in 2018, Brexit has led to uncertainties on the British market. "In 2019, this situation mainly had a negative impact on the turnover of Pikeur and Wilvorst," says Wolfgang Brinkmann. With almost 44 percent, the Pikeur export share nevertheless reached an extremely high level again in 2019. The strongest countries were Great Britain, the Benelux countries, Sweden, Switzerland, Austria and North America. The strongest product groups in Pikeur's clothing segment continue to be riding breeches and jackets.

Wilvorst managed to successfully defend its leading position on the special occasion menswear market in Austria and Switzerland.

In the Netherlands, one of the most important export markets, as well as Austria and Switzerland, Eduard Dressler achieved thoroughly positive export results. The figures declined slightly in Great Britain, Russia and the Ukraine. In all other markets, they developed on budget.

Investments

In the past two years, the group of companies invested 16.6 million euros in its future viability. One focus area was the construction of a new logistics centre for Pikeur in Werther, which was completed in late 2019. The building extends over several floors and offers more than 17,000 square metres of warehouse space, enough for all finished pieces. An average of up to 1,200 parcels a day can now be dispatched from Werther to over 65 countries. In the course of its digitalisation, the company will switch to a new warehouse management system from May 2020 onwards, and the goods will be picked paperless by the semi-automated conveyor system, which facilitates quicker delivery during seasonal peak times.

The group of companies has also invested heavily in state-of-the-art warehouse management equipment at the Goslar site and into the digitalisation of the company. Other investment areas included the acquisition of trade mark rights and the expansion of the bugatti brand retail business.

Responsibility

The issue of social, ecological and corporate responsibility is becoming increasingly important in society, and also in the fashion industry. Accordingly, the group of companies has developed a customised comprehensive sustainability strategy together with its partner hessnatur. "We see the issue of sustainability as a value driver for our Holding's brands and intend to become proactively involved in this area," emphasises Julius Brinkmann. Specifically, a sustainability project has now been initiated together with the hessnatur Stiftung that aims to reorganise the waste management of a supplier in Bosnia with the circular economy principle in mind to make it possible for the company to meet the stringent requirements of the Business Social Compliance Initiative (BSCI) standard.

Sustainability is also an issue in the collections. From the autumn/winter 2020/2021 season onwards, bugatti will no longer use any real fur or real down feathers. 

Wilvorst is the first special occasion menswear manufacturer to offer a sustainable wedding suit: the "Green Wedding" capsule collection, which places particular importance on fairness, sustainability and considering the future. The focus is on sustainable materials from Germany and Italy, on AZO-free dyes, on fair manufacture in Germany and the EU, on keeping transport distances to a minimum, and on timeless cuts for a long product life cycle. Other factors are biodegradable hangers or labels with flower seeds, for example.

Brands owned by the group of companies

The brands owned by the group of companies cover a wide spectrum, which makes it less dependent on the development of individual segments. It covers the mid- to high price segment with the brands bugatti and Eduard Dressler. bugatti is a lifestyle brand that not only offers mens- and womenswear but also a wide range of accessories as well as home textiles under license. Eduard Dressler specialises in particularly sophisticated menswear. The long-established brand has begun to update its style, more towards smart casual, which has made it increasingly popular. Pikeur and Wilvorst are market leaders in the niche segments equestrian clothing or special occasion menswear, respectively.

Employees

bugatti Holding Brinkmann employs a total of 961 people, including 45 vocational trainees. Of these, 353 work at the company's head office in Herford.

Outlook

The group of companies made some important decisions in 2019. These include the closure of the production facilities for equestrian clothing in Uchte, Lower Saxony, a reduction of the its held on stock and the clarification of trade mark issues. "We will already notice the positive impact of these steps in 2020," says a confident Wolfgang Brinkmann.

The bugatti brand will continue to pursue its international growth strategy. In 2020, it plans to open three stores in Russia. "In addition, we are pushing ahead with the development in the eCommerce area in order to unlock new growth potential for us and to continue to expand the digital brand staging at the national and international level," says managing partner Markus Brinkmann, who has been responsible for the company's IT since 2018.

The group of companies will continue to invest into the brand in 2020 with a major print, online and social media channel campaign aimed at highlighting the brand's diversity and product expertise. Eduard Dressler will continue its successful collaboration with the well-known jazz musician and photographer Till Brönner. Pikeur continues to put its faith in its outfitting supplier agreement with the German Olympic equestrian sports committee (DOKR) in Warendorf, which runs until 2024.

"The fashion shows at the beginning of the year and the pre-orders fill us with optimism for 2020," emphasise the brothers Wolfgang and Klaus Brinkmann.

The group of companies consists of: bugatti GmbH (Herford), bugatti Retail GmbH (Herford), Dressler Bekleidungswerke Brinkmann GmbH & Co. KG (Großostheim), Wilvorst Herrenmoden GmbH (Northeim), Pikeur Reitmoden Brinkmann GmbH & Co. KG (Werther). The bugatti Holding Brinkmann's managing partners are the brothers Wolfgang (69) and Klaus Brinkmann (67), the second generation of the family to head the company, as well as their sons Markus (39) and Julius (36).

Herford, 02 March 2020

Press office:
bugatti Holding Brinkmann GmbH & Co. KG
Public Relations
Tanja Bobel
Hansastr. 55
32049 Herford
Germany

Ph.: + 49 52 21 - 88 41 27
Fax: + 49 52 21 - 88 42 25
Email: [email protected]remove-this.bugatti.de
www.bugatti-fashion.com


Press-

Contact

TANJA BOBEL

Public Relations
bugatti Holding
Brinkmann

Hansastraße 55
32049 Herford
Germany


Tel.: +49 (0) 52 21 / 88 4 - 127
Fax: +49 (0) 52 21 / 88 42 - 225

E-Mail: t.bobel(at)bugatti.de

Ann-Kathrin Zich

Public Relations
bugatti Holding
Brinkmann

Hansastraße 55
32049 Herford
Germany


Tel: +49 (0) 52 21 / 88 4 - 117
Fax: +49 (0) 52 21 / 88 42 - 225

E-Mail: a-k.zich(at)bugatti.de

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