Balenciaga, one of the beloved brands under the Kering Group, has been a topic of interest and curiosity during the company’s financial results presentations in recent years. Although the group has consistently highlighted Balenciaga’s success, specific details about its performance have been scarce. Fortunately, FashionNetwork.com has managed to obtain the luxury brand’s financial results for 2021, shedding light on its remarkable growth.
In 2021, Balenciaga achieved a turnover of 1.189 billion euros, a significant increase from 826 million euros in the previous year (2020) and 927 million euros in 2019. This growth rate translates to an impressive 44% increase between 2020 and 2021, bringing the company’s operating income back to the level it was in 2019, at 326 million euros. Furthermore, the net income reached a record-breaking high of 222 million euros in 2021, compared to 66 million euros in the previous year.
There are several factors that can be attributed to Balenciaga’s success. One of them is the brand’s creative director, Demna Gvasalia, who has brought a fresh and innovative perspective to the brand. Additionally, Balenciaga is well-known for its avant-garde shows, further enhancing its reputation in the industry.
A closer look at the brand’s sales analysis reveals that Balenciaga generated 55 million euros in sales in France alone in 2021, up from 44 million euros in the previous year. However, the primary driving force behind the brand’s growth lies in international markets. Balenciaga is actively expanding its boutique network in these markets while reducing its presence in multi-brand retailers.
According to Lyst’s market analysis, Balenciaga’s Neo Classic bags in small format and pieces from the Hacker Project collaboration with Gucci, such as the Crystal Jacket, have been particularly popular among consumers. The brand has experienced significant growth, particularly in Asia. Its Chinese subsidiary alone achieved over 302 million euros in sales, while the Asia-Pacific region generated nearly 54 million euros. Other subsidiaries in regions like Thailand, Singapore, Australia, and Malaysia have also demonstrated strong performance.
In order to support its rising prominence, Balenciaga has made strategic moves. Despite the challenges brought by the COVID-19 pandemic, the brand has taken control of its e-commerce operations and has established subsidiaries in several countries, including Denmark, the Czech Republic, and Belgium. It has also entered into a joint venture in Qatar. Additionally, Balenciaga has relocated to a new 3,850 square meter building in Paris’s 7th arrondissement, showcasing its growth in terms of physical presence and number of employees.
Balenciaga’s momentum is set to continue in 2022. Following the relaunch of its Haute Couture collection, the brand has opened a dedicated boutique on Avenue George V in Paris. It also plans to optimize its retailer network and expand further, with new store locations in Sydney airport. Currently, Balenciaga boasts around 50 direct sales outlets in North America, 60 in Europe, and over 160 in the Asia-Pacific region. The company aims to reinforce its presence in South America, countries in Asia with growth potential, and India through partnerships with local retailers.
Overall, Balenciaga’s financial results serve as a testament to its success and growth within the luxury industry. With its innovative designs and expanding global network, the brand is well-positioned to continue its upward trajectory in the future.
Useful links:
– Balenciaga Official Website
– Balenciaga on Kering Group’s Website
