Press Releases
Bulgari: first semester 2002 soft revenues versus record levels of first half 2001
Rome, 31 July 2002 - Bulgari, the Italian contemporary jeweller announced in Rome today its interim first semester revenues of 2002. The Group posted a turnover of 338 million Euro showing a decrease of 5.7% compared to the same period of the previous year (359 million Euro). Exchange rates had a negligible impact.
The negative economic conjuncture had a significant impact on sales, making it difficult to reach the high levels of turnover of the previous year.
Furthermore it is to be stressed that owned stores obtained better results than those in franchised and wholesale distribution.
During the first semester sales decreased in the Far East (-18%), in the United States (-15%), and in Italy (-9%) and increased in Europe (+5%) and in the Middle East (+5%). Sales in Italy and in the Far East were penalized by the strong decline in tourism, while a negative economic environment impacted sales in the United States. In Japan sales remained essentially unchanged if expressed in Euro, but increased by 7% in volume.
Concerning turnover by product category, jewellery registered a positive 2% increase which adds up to the 36% increase registered in the first semester 2001. Particularly brilliant was the performance of the perfume category which posted an increase of 20% after a 48% growth of the same period in the previous year. Sales growth in the watch segment remained negative, but showed a significant trend towards improvement (Q2 2002: -13.6%; Q1 2002: -29.2%), and almost reached 2000 sales levels.
The performance of the accessories was good despite the 6% decline, as they follow an 85% increase in the same period the year before and also considering the difficulty of the travel retail segment.
Francesco Trapani, Chief Executive Officer of the Bulgari Group, commented: "Sales of the second quarter are basically in line with this year's first quarter and with our expectations, and were once again penalized by a negative economic environment, by a decrease in travel and by a general uncertainty of the international political situation.
Unfortunately, on top of this, the heavy crises in the financial markets and the renewed fears for the Middle East situation occurred. This is why I believe that the achievement of the initial expectations for the entire 2002 is becoming more difficult."
BULGARI GROUP - REVENUE GROWTH BY PRODUCT CATEGORY
| Q1 2002 | Q2 2002 | H1 2002 | |
|---|---|---|---|
| JEWELS | +16.7% | -8.1% | +2.1% |
| WATCHES | -29.2% | -13.6% | -21.2% |
| PERFUME | +13.4% | +26.5% | +19.9% |
| ACCESSORIES | -5.3% | -6.3% | -5.8% |
| ROYALTIES & OTHERS | +27.8% | -26.5% | -7.1% |
| TOTAL | -5.3% | -6.1% | -5.7% |
BULGARI GROUP - REVENUE BREAKDOWN BY PRODUCT CATEGORY
| Q1 2002 | Q2 2002 | H1 2002 | |
|---|---|---|---|
| JEWELS | 39.6% | 38.0% | 38.7% |
| WATCHES | 33.4% | 36.9% | 35.2% |
| PERFUME | 19.4% | 18.2% | 18.8% |
| ACCESSORIES | 5.2% | 4.8% | 5.0% |
| ROYALTIES & OTHERS | 2.4% | 2.1% | 2.3% |
| TOTAL | 100% | 100% | 100% |
BULGARI GROUP - REVENUE GROWTH BY GEOGRAPHIC AREA
| Q1 2002 | Q2 2002 | H1 2002 | |
|---|---|---|---|
| ITALY | -15.9% | -2.1% | -8.7% |
| EUROPE (EXL. ITALY) | +18.4% | -5.1% | +5.0% |
| AMERICA | -13.2% | -16.9% | -15.1% |
| JAPAN | +0.7% | -1.2% | -0.4% |
| FAR EAST | -24.6% | -12.8% | -18.5% |
| MIDDLE EAST & OTHERS | -1.7% | +12.4% | +5.5% |
| TOTAL | -5.3% | -6.1% | -5.7% |
BULGARI GROUP - REVENUE BREAKDOWN BY GEOGRAPHIC AREA
| Q1 2002 | Q2 2002 | H1 2002 | |
|---|---|---|---|
| ITALY | 12.8% | 13.9% | 13.4% |
| EUROPE (EXL. ITALY) | 29.2% | 26.7% | 27.9% |
| AMERICA | 16.1% | 13.3% | 14.6% |
| JAPAN | 18.7% | 21.5% | 20.2% |
| FAR EAST | 16.1% | 17.3% | 16.7% |
| MIDDLE EAST & OTHERS | 7.1% | 7.2% | 7.2% |
| TOTAL | 100% | 100% | 100% |
Source: Bulgari S.p.A.
Non audited figures - First semester results will be approved by the Board on September 13 2002