The Board of Directors of Bulgari S.p.A. approved the interim management statements for the Bulgari Group for the first half of 2010. The report shows a turnover of 443.3 million Euro, a rise of 8.2% at comparable exchange rates (+11.8% at current exchange rates) compared to the same period of the previous year, an operating profit of 12.3 million Euro and a net loss of 7.7 million Euro.
During the half year in question, all product categories, with the sole exception of watches, contributed positively to growth.
Jewellery rose by 10.5% at comparable exchange rates (+14.8% at current exchange rates).
Watch sales decreased by 4.6% (-1.2% at current exchange rates). In fact, if the comparison basis for the first half of 2009 is appropriately filtered – by eliminating sales of Roth and Genta brand watches, no longer in stock, and sales of the watches exhibited at Basel which at that time were delivered in the second quarter and which this year will be delivered in the third quarter – the watch category actually grew by 14%.
Turnover by geographical area
During the first half, sale performance differed among the various geographical areas. Europe grew by 1% (with Italy at +2.7%), showing clear signs of improvement in the second quarter in the directly owned stores, especially in those Countries (Italy, France, Spain and United Kingdom) that benefitted from a resumption of tourist flows.
America grew 52.7%, whilst Japan, down 4%, continues to show signs of weakness. The rest of Asia is still growing briskly (+21.4%) thanks to the strong contribution of the Chinese market (Greater China: +29.7%). The Middle East / Other, lastly, declined by 5.1% at current exchange rates, as a result of a combination of good sales performance in the Middle East (+6,1%) and a decline in the rest of the world.
As at 30 June 2010, the total number of Group stores was 283, of which 169 were directly owned.
Francesco Trapani, Chief Executive Officer of the Bulgari Group, thus commented: “I am pleased with the results achieved by the Group in the first half of the year, as they are in line with our forecasts and they confirm the validity of the strategies adopted and focused, on one hand, on cost containment and, on the other, on investment in our creativity and in the growth opportunities offered by the market. In particular, the excellent performance of accessories is rewarding our project for diversification and verticalisation in this product category, which we carried out years ago, and our strong commitment for its subsequent development in terms of distribution and image. In light of July sales trends, I think it is reasonable at this time to confirm the validity of the “mid single digit” growth guidance at comparable exchange rates for the yearly turnover, which we had already provided to the market, though I do hope that all the initiatives already in place and set to continue for the rest of the year will allow us to beat the guidance.”
Bulgari is one of the global players on the luxury market. In 2009 the Group posted a turnover of 926.6 million Euro. Bulgari relies on a stores network in the most exclusive shopping areas in the world and on selected distributors. As of 30.06.2010 the number of the Bulgari stores in the world was 283 of which 169 as directly owned stores. Bulgari has a product portfolio that ranges from jewels and watches to accessories and perfumes. The Group is controlled by the Bulgari family, holding about 51.0% of the share capital. The remaining 49.0% is floating on the Milan Stock Exchange.
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