Bulgari’s 3Q Jewelry Sales +10%, Profits +29% to $43.7M
Diamonds.net, NY
By Jeanette Goldman Posted: 11/15/2006
RAPAPORT… Sales at luxury jeweler and watch company Bulgari rose 9.6 percent to $306.5 million (EUR 239.0 million) during its third quarter of fiscal 2006.The company’s operating profit increased 32.8 percent to $54.3 million (EUR 42.3 million.) Bulgari’s net profit for the third quarter climbed 29.4 percent from third quarter 2005 to $43.7 million (EUR 34.1 million.)
Bulgari’s jewelry continued to grow during the three-month period with a 9.7 percent increase, and the group’s watch sales registered a 14 percent growth rate. The company’s year-to-date jewelry sales increased 10.2 percent while watch sales rose 17.3 percent. Perfumes grew sales by 19.3 percent and accessories sales dropped by 16.4 percent.
By region, sales performance was very strong in the United States and rose 30.1 percent in the quarter. Excluding the 14 percent decline in Italy, sales across Europe rose 26.4 percent. Bulgari in Japan showed a slowdown of 4.2 percent compared with a very high base of 13.6 percent growth in the third quarter of 2005. The Middle East performed well with a growth rate of 9.5 percent. The Far-East registered a 13.6 percent sales increase during the quarter.
Sales performance in the quarter reflected significant sales growth in Bulgari owned stores and a more selective policy carried out by the company towards third party distributors, the company reported.
“The outstanding sales results of the first nine months confirm the positive trend, with all product categories registering a double-digit growth rate,†said Bulgari CEO Franscesco Trapani. “I would like to underline the brilliant performance of watches, also driven by the success of the new high-end models recently launched. As far as geographical areas are concerned, I am not surprised by the current growth slowdown in Japan, a mature market where a further expansion is less easy to be achieved.â€
