Press Releases
Bulgari Group: the strong growth of revenues continues
- First half 2007 turnover: 487.8 million Euro (+15% at comparable exchange rates)
- Second quarter 2007 turnover: 262.6 million Euro (+13% at comparable exchange rates)
Rome, July 30th 2007 – Turnover of the Bulgari Group in the first half 2007 was 487.8 million Euro compared to 447.8 million Euro in the same period of last year with a 14.8% increase at comparable exchange rates while, at current exchange rates, the increase was 8.9% due to the continuative strength of Euro vs. Dollar and Yen.
In the second quarter 2007 sales were 262.6 million Euro compared to 243.9 million Euro posted in the same quarter 2006 (+13.5% at comparable exchange rates and +7.7% at current exchange rates) with a high base of comparison in the previous year (+16.9% at comparable exchange rates).
All the variations reported below are expressed at comparable exchange rates unless noted otherwise.
Revenues by product categories
The first half 2007 ended with outstanding sales results for the Group: the jewellery segment, core business of the Company, registered once again a brilliant sales performance (+20.8% and +18.0% in the second quarter) as well as watches (+10.2% and +12.8% in the second quarter), also thanks to the success of the new Assioma D model for women presented at the Basel Fair. Accessories registered a decrease (-8.2% and -4.6% in the second quarter) due to the weakness of the Japanese market, where an important part of the business for this product category is concentrated, and to the anticipation of the Spring-Summer collection deliveries as already illustrated in the first quarter; in any case, the very high comparison base of last year (+32.3% in the first half and +20.2% in the second quarter) must be underlined. Perfumes, finally, registered a robust and particularly brilliant growth (+21.6% and +13.6% in the second quarter) as well, considering the absence of relevant product launches in this first part of the year.
Revenues by geographical area
As far as geographical areas are concerned, in the first half 2007 the robust sales growth in the United States (+26.6% and +49.8% in the second quarter) was very satisfying, supported by the re-opening of the New York flagship store on Fifth Avenue last March; Europe showed a very positive sales trend (+10.9%) as well, where the Italy’s performance must be highlighted (+15.7%). Japan, as largely announced by the Company, continued to post a weak performance (-9.0%), thus confirming the general weakness of the luxury sector in this market. The rest of Asia counterbalanced this situation for the luxury sector in general and for Bulgari in particular, showing signs of vitality and an exuberant growth (+55.0%). The percentage ratio on turnover of this area reached 18.9% in the first half and is now almost equal to the one of Japan (20.7%). The growth trend is uniform in all the countries of the area and the outstanding performance of the Chinese market, supported by an increasing number of directly owned stores, must be underlined. Middle East/Other, finally, registered a 7.8% growth at current exchange rates despite the strong comparison base (+21.3% in the first half 2006 at current exchange rates).
Revenues by sales channel
As of June 30th 2007 the total number of Bulgari stores was 232 of which 136 were directly owned stores. At comparable exchange rates, in the first half 2007 revenues in the directly owned stores showed a very aggressive increase, higher than the one posted through third party distributors.
Francesco Trapani, Chief Executive Officer of the Bulgari Group, thus commented: "The satisfying sales results of this first half confirm once again the strength of the Bulgari brand and the efficacy of the adopted strategies across all markets. The distribution strategy focussed on new important openings and on the enlargement and revamping of existing stores in prestigious locations worldwide has, in fact, already contributed to the outstanding performances registered in Europe and in the United States and, in accordance to the guidance already given to the market, I am therefore confident of an improvement in Japan in the fourth quarter.”
Bulgari is one of the global players on the luxury market. In 2006 the Group posted a turnover of 1,010.4 million Euro. With a market capitalization of about 3.300 million Euro (as of 29.07.2007), Bulgari relies on a stores network in the most exclusive shopping areas in the world and on selected distributors.
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 52.0% of the share capital. The remaining 48.0% is floating on the Milan Stock Exchange.
| H1 2007 | H1 07/ H1 06 | H1 06/ H1 05 | ||||
|---|---|---|---|---|---|---|
| REVENUES BY PRODUCT LINE | EUR M. | % on Revenues | % REPORTED |
% COMP.FX |
% REPORTED |
% COMP.FX |
| JEWELS | 206.5 | 42.3% | 14.9% | 20.8% | 9.9% | 9.9% |
| WATCHES | 132.4 | 27.2% | 3.3% | 10.2% | 18.5% | 17.9% |
| ACCESSORIES | 40.6 | 8.34% | -14.6% | -8.23% | 31.2% | 32.3% |
| OTHER (INCL. FR ROYALTIES) | 3.6 | 0.8% | 11.1% | - | 14.7% | - |
| JWA Division | 383.1 | 78.6% | 6.8% | 13.0% | 15.4% | 15.2% |
| PARFUM Division | 92.3 | 18.9% | 17.2% | 21.6% | 11.8% | 11.9% |
| OTHER | 12.4 | 2.5% | 20.6% | - | 30.7% | - |
| TOTAL | 487.8 | 100.0% | 8.9% | 14.8% | 15.1% | 15.0% |
| H1 2007 | H1 07/ H1 06 | H1 06/ H1 05 | ||||
|---|---|---|---|---|---|---|
| REVENUES BY GEOGRAPHICAL AREA | EUR M. | % on Revenues | % REPORTED |
% COMP.FX |
% REPORTED |
% COMP.FX |
| EUROPE | 181.9 | 37.3% | 10.9% | - | 16.29% | - |
| of which Italy | 64.1 | 13.2% | 15.7% | - | 7.4% | - |
| AMERICAS | 82.9 | 17.0% | 18.8% | 26.63% | 14.0% | 10.6% |
| ASIA | 193.3 | 39.6% | 3.7% | 13.3% | 13.6% | 14.4% |
| of which Japan | 101.0 | 20.7% | -18.4% | -9.0% | 26.7% | 30.9% |
| of which Far East | 92.3 | 18.9% | 47.1% | 55.0% | -5.6% | -8.3% |
| MIDDLE EAST/OTHER | 29.7 | 6.1% | 7.86% | - | 21.3% | - |
| TOTAL | 487.8 | 100.0% | 8.9% | 14.8% | 15.1% | 15.0% |
| Q2 2007 | Q2 07/Q2 06 | Q2 06/Q2 05 | ||||
|---|---|---|---|---|---|---|
| REVENUES BY PRODUCT LINE | EUR M. | % on Revenues | % REPORTED |
% COMP.FX |
% REPORTED |
% COMP.FX |
| JEWELS | 112.4 | 42.8% | 12.2% | 18.0% | 9.7% | 10.3% |
| WATCHES | 73.9 | 28.1% | 5.7% | 12.8% | 20.6% | 21.1% |
| ACCESSORIES | 19.5 | 7.5% | -11.6% | -4.6% | 18.5% | 20.2% |
| OTHER (INCL. FR ROYALTIES) | 2.0 | 0.7% | 11.9% | - | 19.7% | - |
| JWA Division | 207.8 | 79.1% | 7.2% | 13.4% | 14.5% | 15.9% |
| PARFUM Division | 49.3 | 18.8% | 9.6% | 13.6% | 23.5% | 24.1% |
| OTHER | 5.6 | 2.1% | 9.9% | - | 24.4% | - |
| TOTAL | 262.6 | 100.0% | 7.7% | 13.5% | 16.3% | 16.9% |
| Q2 2007 | Q2 07/Q2 06 | Q2 06/Q2 05 | ||||
|---|---|---|---|---|---|---|
| REVENUES BY GEOGRAPHICAL AREA | EUR M. | % on Revenues | % REPORTED |
% COMP.FX |
% REPORTED |
% COMP.FX |
| EUROPE | 97.5 | 37.1% | 6.9% | - | 11.8% | - |
| of which Italy | 34.1 | 13.0% | 10.9% | - | 2.7% | - |
| AMERICAS | 49.2 | 18.8% | 41.3% | 49.8% | 12.7% | 12.9% |
| ASIA | 99.8 | 38,0% | -3.1% | 6.1% | 21.3% | 24.3% |
| of which Japan | 52.3 | 19.9% | -20.4% | -10.6% | 30.3% | 36.3% |
| of which Far East | 47.4 | 18.1% | 27.6% | 33.6% | 8.2% | 7.7% |
| MIDDLE EAST/OTHER | 16.1 | 6.1% | 7.8% | - | 20.3% | - |
| TOTAL | 262.6 | 100.0% | 7.7% | 13.5% | 16.3% | 16.9% |
Source: Bulgari S.p.A. – Not audited preliminary results.
For further information
| Media relations | Analysts / investors relations |
| Paolo Piantella | Renata Casaro |
| Corporate Financial Press Office Director | Investor Relations Director |
| tel. +39 06 68 810 593 | tel. +39 06 68 810 467 |
| e-mail paolo.piantella@bulgari.com | e-mail renata.casaro@bulgari.com |
| www.bulgari.com | http://ir.bulgari.com |