Press Releases
Bulgari: despite difficult economic environment, good results for jewellery sales; decrease of watch sales
Rome, 14 May 2002 Bulgari, the Italian contemporary jeweller announced in Rome today its consolidated first quarter results of 2002, showing a turnover of 156.2 million Euro, a decrease of 5% compared to 165 million Euro in the first quarter 2001. Impact of exchange rates was minimal (about 1%).
During the same period of time Bulgari posted a consolidated operating profit of 16.1 million Euro against 26.8 million Euro in 2001 and a net profit of 9.0 million Euro against 22.5 million Euro in 2001.
Jewellery sales continue to increase (+17%), despite the already very high base of 2001 (Q1 2001/Q2 2000 +25%), thanks to the launch of Lucea last autumn.
Particularly positive was the further increase of the perfumes (+13%), especially if considering that they had already grown in excess of 66% the year before, confirming the great success of BLV. The accessories, which had registered an exceptional increase in 2001 (+97% in the first quarter of 2001), were penalized in this first quarter by a decrease in the travel retail business, realizing a turnover of 8.1 million Euro, against the 8.6 million Euro of the same period last year.
A significant decrease was registered in the sales of watches (-29%) suffering from the strong decline of orders on behalf of retailers and of the travel retail channel. First indications of the Geneva watch fair seem to be showing a gradual, even if slow, recovery of these distribution channel.
Concerning turnover by geographic area, there was a 13% decrease in the US, showing, though, a recovery compared to the 33% registered in the forth quarter of 2001. The Far East, especially Hong Kong and Singapore, penalized by the lack of Japanese tourists posted a decline of 25%. Concerning Italy, the 16% decrease can be attributed, again, to the decline of tourists, but also to the extraordinary sales performance in 2001 (Q1 2001/Q2 2000 +85%).
Japan showed a real term growth of 7% (+1% in Euro) confirming the good performance of this market. Also positive was the trend in Europe (excluding Italy), especially thanks to the very good performance of the German, French and UK markets, with an increase of 18% compared to the same period last year.
Francesco Trapani, Chief Executive Officer of the Buglari Group, commented: The sales level of this first quarter of the year was in line with our expectations and is paying a difficult start into 2002. Especially the watch business was still penalized by small volumes in orders on behalf of retailers. The trend of the jewellery and the perfume business keeps being particularly satisfying. The fact that the rationalization activities of the organization and the cost reduction started in the second half of 2001 have shown good results is very satisfying. These costs, excluding advertising investments, increased at a lower rate (10%) than in the past years.
I believe that these first quarter results confirm our expectations of a recovery in 2002, that will probably bring about a very difficult first half of the year, followed by a vigorous upturn, starting in the second half. With these remarks, I believe to be able to confirm our initial outlook that should foresee a single digit turnover growth and a double digit increase of net profits for the entire 2002.
BULGARI GROUP
GROWTH BY GEOGRAPHIC AREA
| 1 Q 2002 | 1 Q 2001 | |
|---|---|---|
| ITALY | -16% | +85% |
| EUROPE (EXCL. ITALY) | +18% | +31% |
| AMERICA | -13% | +14% |
| JAPAN | +1% | +9%* |
| FAR EAST | -25% | +48%* |
| MIDDLE EAST / OTHERS | -2% | +95% |
Source:Bulgari SpA
BULGARI GROUP
BREAKDOWN BY GEOGRAPHIC AREA
| 1 Q 2002 | 1 Q 2001 | |
|---|---|---|
| ITALY | 13% | 14% |
| EUROPE (EXCL. ITALY) | 29% | 23% |
| AMERICA | 16% | 18% |
| JAPAN | 19% | 18%* |
| FAR EAST | 16% | 20%* |
| MIDDLE EAST / OTHERS | 7% | 7% |
| TOTAL | 100% | 100% |
Source: Bulgari SpA
*reinstated data following acquisition of South Korean franchisee
BULGARI GROUP
GROWTH BY PRODUCT CATEGORY
| 1 Q 2002 | 1 Q 2001 | |
|---|---|---|
| JEWELLERY | +17% | +25% |
| WATCHES | -29% | +30% |
| PERFUME | +13% | +66% |
| ACCESSORIES | -5% | +97% |
| ROYALTIES & OTHERS | +28% | +2% |
Source: Bulgari SpA
BULGARI GROUP
BREAKDOWN BY PRODUCT CATEGORY
| 1 Q 2002 | 1 Q 2001 | |
|---|---|---|
| JEWELLERY | 40% | 32% |
| WATCHES | 34% | 45% |
| PERFUME | 19% | 16% |
| ACCESSORIES | 5% | 5% |
| ROYALTIES & OTHERS | 2% | 2% |
| TOTAL | 100% | 100% |
Source: Bulgari SpA
Non audited results
For further information: Francesca Zanoni, Tel. 06. 688 10 594 Francesca.Zanoni@Bulgari.com