bugatti Holding Annual Report 2023

Previous year's sales slightly exceeded again

bugatti Holding Brinkmann remains on course for success in 2023

Herford. bugatti Holding Brinkmann GmbH & Co. KG, based in Herford, continued its successful course in 2023. With sales of €202 million, it even slightly exceeded the excellent previous year's sales (€201 million) and is back at pre-pandemic levels. "Given the diverse challenges and difficult conditions, we made it through the year well. Fashion is strongly influenced by emotions, and these uncertain times are affecting consumers' purchasing behavior. We are therefore satisfied with what we have achieved," emphasizes Wolfgang Brinkmann, Managing Partner.

Key investment areas in 2023 continued to be the sharpening of brands and the further expansion of digitalization. Supply chain management will be restructured and aligned across the Group, and holistically integrated into material, product, and information flows across the entire value chain. In the future, supply chain management will also consider sustainability aspects, from sourcing (selection of material suppliers and producers), transport and goods movements to optimized storage and subsequent distribution across all sales channels. The newly created position of Head of Supply Chain Management has existed since August 2023. The goal is to position all processes even more effectively and ecologically, both economically and economically.

 
export

The export share increased again compared to the previous year, reaching 48 percent in 2023 (2022: 47 percent). The most important export markets were again Italy, Austria, France, Ireland, and the Benelux countries.

 
Employees

In total, bugatti Holding Brinkmann employs 615 people (2022: 628).

 
Bugatti

The company achieved double-digit sales growth in 2023 and performed very positively overall. The modernization of the brand has gained further momentum. With the newly created position of Chief Brand Officer (CBO), bugatti has taken an important step in this direction. Work on the brand's facelift has begun and is already evident in the visual language and customer communication for the Fall/Winter 2024 collection. The goal is to charge the brand with positive emotions while preserving its brand DNA. The brand is using social media to build a younger community digitally. "We want to leverage the potential of our label even further, make it future-proof, and gain international appeal," explains Julius Brinkmann, Managing Partner.

 
The bugatti brand further expanded its export share, rising from 55 percent in the previous year to 56 percent in 2023. The most important export markets were Italy, Austria, Ireland, Belgium, Poland, and France. Belgium and Ireland performed particularly well.

The brand also continued to grow in its own stores. In 2023, sales there were 17 percent higher than the previous year. Bugatti operates 41 stores worldwide. In addition, there are 16 stores and seven outlets in Germany. Another store in Germany is currently being planned.

Online sales are showing a slightly positive trend, thanks to the webshop relaunch in 2023 as part of the brand's ongoing digitalization.

The 14 license partners achieved a revenue increase of almost 8 percent in 2023 compared to the previous year, generating the highest license revenue in the company's history.

The women's wear division performed well, posting an increase in sales. The brand gained significant premium retail space. As a new export market,  Belgium is strengthening its international commitment. 

 
Dressler

Dressler, a provider of high-quality men's fashion, is building on the excellent business performance of the previous year and can report continuous growth for 2023. The NOS (year-round product range) programs in particular were a sales driver for retail and industry in spring 2023.

The return to the international stage with a rebranding of the logo and the appearance at Pitti Uomo in Florence are just the beginning of measures in 2024 that are intended to accelerate the modernization and internationalization of the brand. The focus will be on existing and new distribution concepts to position the brand for the future and drive export expansion.

 
Wilvorst

Wilvorst, with its brands Wilvorst, Tziacco, and atelier torino, performed steadily in 2023 despite challenging market conditions. Sales remained virtually unchanged from the previous year. Despite increasing competition and a dynamic market situation, the provider of formal men's wear succeeded in further strengthening its leading market position.

Sales are slightly above expectations, thanks to an effective strategy and strong performance in various business areas. Customers have appreciated the investments in product, service, and quality.

Despite the continuing difficult environment, the company remains optimistic about the future. The focus on innovation and customer orientation will continue to play a key role this year in generating growth and securing success.

 
Pikeur

After several very strong previous years and record sales in 2022, Pikeur Reitmoden from Werther, Westphalia, with its Pikeur and Eskadron brands, was unable to decouple itself from the general trends in the equestrian market in 2023. High inflation rates, sharply increased maintenance and competition costs, and the new fee schedule for veterinarians are placing immense strain on this market. These influences led to declining company sales, more sharply at Pikeur than at Eskadron.

"Looking ahead, we are confident, as we have created excellent conditions for positive development for both brands," emphasizes Managing Partner Markus Brinkmann. Strong brand ambassadors who are proving themselves at the top of the world rankings, as well as media highlights such as the Olympic Games in Paris, are strengthening the marketing potential through partnerships with the German Olympic Equestrian Committee (DOKR) and the Dutch and Austrian Equestrian Federations. In addition, both brands will focus on sharpening their brand identity, particularly with regard to the digital potential of the equestrian market.

 
sustainability

Sustainable business practices have always been closely linked to bugatti Holding as a medium-sized, third-generation family business. Sustainability is practiced and continuously improved on many levels. High-quality products stand for longevity. Demand-driven production, which only begins after orders have been received from specialist retailers, prevents overproduction. Materials and products are purchased only from certified suppliers and producers known to the company, whose quality, environmental, and social standards meet stringent quality standards. Furthermore, the development teams examine and test innovations and new ecological material developments, taking a circular economy into account. All departments along the value chain work to reduce and optimize the carbon footprint.

 
outlook

In 2024, the general conditions will remain difficult and marked by uncertainty. This makes planning difficult for companies and consumers. Buying reluctance is becoming increasingly noticeable, especially in Germany. Companies are also suffering from the burden of bureaucracy. Nevertheless, the Brinkmann Group remains optimistic. "We have been successfully investing in our brands and processes for years. As a result, we have become significantly more resilient and are solidly positioned for challenging times. In 2024, we will continue on this path with great commitment and systematically expand our future viability," explains Klaus Brinkmann, Managing Partner.

 The group includes: bugatti GmbH (Herford), bugatti Retail GmbH (Herford), Dressler Bekleidungswerke Brinkmann GmbH & Co. KG (Großostheim), Wilvorst Herrenmoden GmbH (Northeim), and Pikeur Reitmoden Brinkmann GmbH & Co. KG (Werther). The managing partners of bugatti Holding Brinkmann are the second-generation brothers Wolfgang (73) and Klaus Brinkmann (71), as well as their sons Markus (43) and Julius (40), the third generation.

 
Herford, April 16, 2024

 
Press contact:

bugatti Holding Brinkmann GmbH & Co. KG

public relations

Tanja Bobel

Hansastr. 55

32049 Herford

Germany

Phone: + 49 52 21 – 88 41 27

Fax: + 49 52 21 – 88 42 23

Email: t.bobel@bugatti.de

www.bugatti-fashion.com