Bulgari Group sales slowdown

All geographical areas of the Bulgari Group, registered an overall slowdown in sales due to the worldwide crisis of the financial markets and its impact on the demand for goods and services sales dropped. Europe, in particular, posted a 5% growth in the quarter (Italy –5%) and a 6% growth in the first nine months (Italy –8%) also thanks to the positive contribution of almost all the countries in the region. The United States registered an 8% decrease in the quarter and a 6% decrease in the nine months. As for Asia (+2% in the quarter and +9% in the nine months), Japan showed a 3% decrease in the quarter due to a sales contraction in the wholesale channel and to a modest sales growth in the retail channel, while it confirmed its rise in the first nine months of the year (+2%).

It is not all that bad for Bulgari. The company made a turnover of 256 million Euro, which comes to an increase of 2% at comparable exchange rates (-0.5% at current exchange rates) matching up to last year. In the first nine months of the year revenues increased by 6% at comparable exchange rates (+2% at current exchange rates), from 744 to 763 million Euro.

For the first three quarters, the jewellery core business of the Bulgari Group, registered a sales increase leading to a rise of 7% compared to 4% in 2007 for the same period. Accessories registered a 16% decrease in the quarter, a number that should be compared with the increase of 38% posted in the same quarter of last year, which leads to a -2% cumulative variation in the nine months. A total different story took place at the directly owned stores, as this category registered a strong double-digit increase both in the quarter and in the first nine months of the year.

Bulgari is one of the global players on the luxury market with a total of 259 stores, of which 161 are directly owned stores. The company has a product portfolio that ranges from jewels and watches to accessories and perfumes.

Image: Multi coloured Bulgari pendant