Press Releases
Bulgari Group: stable revenues in the full year 2008. Economic crisis affected sales in the fourth quarter.
- Full year 2008 turnover: 1,075.1 million Euro (-1.5% at current exchange rates, -0.9% at comparable exchange rates)
- Fourth quarter 2008 turnover: 312.6 million Euro (-9.8% at current exchange rates, -15.5% at comparable exchange rates)
Rome, 29 January 2009 – In the full year
2008 the Bulgari Group registered a turnover of 1,075.1 million
Euro compared to 1,091.0 million Euro in 2007, with a decrease of
1.5% at current exchange rates (-0.9% at comparable exchange rates
).
In the fourth quarter of 2008 sales reached 312.6 million Euro
compared to 346.5 million Euro in the same period of last year
(-9.8% at current exchange rates and -15.5% at comparable exchange
rates).
All the variations reported below are expressed at comparable exchange rates unless noted otherwise.
Revenues by product category
In the full year 2008, as a result of the
worsening macroeconomic conditions, especially from the fourth
quarter, all product categories registered a decrease in sales,
with the exception of perfumes. The jewellery segment, core
business of the Group, fell slightly (by 1.5%), although this
should be considered in the light of a particularly high comparison
base in the previous year (+20.0% in 2007). Contributing to this
result, which must be considered very satisfactory under the
present circumstances, was the high jewellery segment where
turnover held up excellently in 2008 compared to the previous year
when the Group achieved a record performance. Watches
(-10.9%) have been affected by an especially negative performance
in the entry price segment, as a consequence of the decision to
eliminate some product lines, by the shortages in sourcing some
technical components, which resulted in losses of production
volumes in the first part of the year, and finally by a general
slowdown in the wholesale channel demand, more noticeable in the
fourth quarter. Accessories fell by 4.1% because of a
negative performance in the wholesale channel, particularly in
Japan, counterbalanced by a strong double-digit sales growth in the
directly owned stores for this category. Perfumes, in
conclusion, rose by 13.9%, driven by the continuing success of all
Bulgari fragrances. Looking at the fourth quarter of
2008, when the effects of the current economic crisis were
to be felt in full, perfumes alone confirmed their strength,
rising by 0.7%, while sales decrease hit jewellery (-17.3%
although this should be compared to a particularly high base of
+20.3% in the same quarter of 2007), watches (-28.0%) and
accessories (-9.5%).
Revenues by geographical area
In the full year 2008 Europe fell by 1.4%,
with an especially negative performance in Italy (-11.1%), a
result which was already in evidence during the first part of the
year. The other European countries grew overall by 3.5%. The
United States registered a contraction of 6.7%, although this
should be considered in the light of a particularly high comparison
base of +21% in 2007. Asia limited its fall to 1.2%: given
the result of Japan, which fell by 8.5% over the year, it is
worth underlining that the sales growth in the rest of Asia
(+8.4% to be compared to an extremely demanding base of +41.2% in
the previous year) acted as a counterweight to the overall
performance in the Asian region. A growth of 9.1% at current
exchange rates was also recorded in the Middle East/Other
area.
Looking at the fourth quarter of 2008 only the
Middle East/Other area achieved a good growth (+11.1% at
current exchange rates) while the other regions fell: Europe
by 16.8% (-17.7% in Italy); the United States by
9.3%; and Asia by 20.0%, with the rest of Asia down
11.9%. and Japan down 25.4%. It is worth remembering that the
performance of Japan must be compared to a challenging base in the
fourth quarter 2007, when two flagship stores in Tokyo (in the
Ginza and Omotesando areas) have been opened with important
supporting promotional activities and there was also the
contribution of two stores, always in Ginza, closed at the
beginning of 2008.
Turnover by sales channel
The number of Bulgari stores at 31 December 2008 was 264, of which
164 were directly owned stores. In the full year 2008 directly
owned stores posted a sales performance better than the one towards
third party distributors. In the fourth quarter this performance
was even stronger.
Profit & loss, balance sheet
As usual, the 2008 results will be available on 11 March 2009, when
the next meeting of the Board of Directors will take place. The
Group’s net financial position at 31 December 2008 was 306.2
million Euro.
Francesco Trapani, Chief Executive Officer of the Bulgari Group, thus commented: “Also for our Company, the nasty economic environment had a strong negative effect on the holiday season’s sales. It is therefore evident that this situation will be inevitably reflected in a decrease of the 2008 profits higher than the one showed at the end of the first nine months of the year.I would like to underline that, differently from what some important competitors have done, Bulgari has not reduced its selling prices and has not changed its discount policy with the final client and trade in order to protect the integrity of the brand in the long term. Considering the results of the last months and expecting a very difficult 2009, the Company is further committed to be as efficient as possible by reassessing the costs and investments structure in order to defend its profitability and cash flow as much as possible.”
|
Further comments of CEO Francesco Trapani are available
in the video-message at the following link: |
BULGARI GROUP – REVENUES BY PRODUCT CATEGORY – FY 08
| REVENUES BY PRODUCT CATEGORY |
FY 2008 | FY 08/ FY 07 | FY 07/ FY 06 | |||
|---|---|---|---|---|---|---|
| EUR M. |
% On Revenues |
% REPORTED |
% COMP. FX. | % REPORTED |
% REPORTED | |
| Jewels | 448.2 | 41.7% | -2.6% | -1.5% | 14.4% | 20.0% |
| Watches | 263.8 | 24.5% | -10.5% | -10.9% | 2.0% | 8.2% |
| Accessories | 83.1 | 7.7% | -1.5% | -4.1% | -5.1% | 1.2% |
| Other (incl. FR royalties) | 7.2 | 0.7% | -3.1% | - | 1.5% | - |
| JWA Division | 802.3 | 74.6% | -5.2% | -5.0% | 7.5% | 13.5% |
| PARFUM Division | 248.4 | 23.1% | 12.0% | 13.9% | 11.0% | 15.4% |
| OTHER | 24.4 | 2.3% | 8.4% | - | 4.7% | - |
| TOTAL | 1075.1 | 100% | -1.5% | -0.9% | 8.2% | 13.6% |
BULGARI GROUP – REVENUES BY GEO AREA – FY 08
| REVENUES BY GEO AREA |
FY 2008 | FY 08/ FY 07 | FY 07/ FY 06 | |||
|---|---|---|---|---|---|---|
| EUR M. | % On Revenues |
% REPORTED |
% COMP. FX. | % REPORTED |
% COMP. FX. | |
| EUROPE | 421.5 | 39.2% | -1.4% | - | 10.2% | - |
| of which Italy | 125.7 | 11.7% | -11.1% | - | 7.6% | - |
| AMERICAS | 154.4 | 14.4% | -12.5% | -6.7% | 12.1% | 21.0% |
| ASIA | 435.9 | 40.5% | 1.6% | -1.2% | 5.6% | 14.8% |
| of which Japan | 229.1 | 21.3% | -1.1% | -8.5% | -9.7% | -0.9% |
| of which Rest of Asia | 206.8 | 19.2% | 4.7% | 8.4% | 31.9% | 41.2% |
| MIDDLE EAST/OTHER | 63.3 | 5.9% | 9.1% | - | 1.5% | - |
| TOTAL | 1075.1 | 100% | -1.5% | -0.9% | 8.2% | 13.6% |
Source: Bulgari S.p.A. – Not audited preliminary results.
BULGARI GROUP – REVENUES BY PRODUCT CATEGORY – Q4 08
| REVENUES BY PRODUCT CATEGORY |
Q4 2008 | Q4 08/ Q4 07 | Q4 07/ Q4 06 | |||
|---|---|---|---|---|---|---|
| EUR M. | % On Revenues |
% REPORTED |
% COMP. FX. |
% REPORTED |
% COMP. FX. | |
| Jewels | 129.3 | 41.3% | -12.8% | -17.3% | 14.2% | 20.3% |
| Watches | 72.0 | 23.0% | -21.2% | -28.0% | 2.6% | 8.7% |
| Accessories | 25.5 | 8.2% | 5.1% | -9.5% | -7.8% | -2.5% |
| Other (incl. FR royalties) | 2.0 | 0.7% | 3.8 | - | -19.8% | - |
| JWA Division | 228.8 | 73.2% | -13.9% | -20.1% | 7.4% | 13.4% |
| PARFUM Division | 79.7 | 25.5% | 4.8% | 0.7% | 9.8% | 15.0% |
| OTHER | 4.1 | 1.3% | -13.6% | - | -22.8% | - |
| TOTAL | 312.6 | 100% | -9.8% | -15.5% | 7.3% | 13.0% |
BULGARI GROUP – REVENUES BY GEO AREA – Q4 08
| REVENUES BY GEO AREA |
Q4 2008 | Q4 07/ Q4 06 | Q4 07/ Q4 06 | |||
|---|---|---|---|---|---|---|
| EUR M. | % On Revenues |
% REPORTED |
% COMP. FX. |
% REPORTED |
% COMP. FX. | |
| EUROPE | 119.6 | 38.3% | -16.8% | - | 10.3% | - |
| of which Italy | 38.1 | 12.2% | -17.7% | - | -0.7% | - |
| AMERICAS | 49.5 | 15.9% | -4.8% | -9.3% | 2.7% | 13.3% |
| ASIA | 124.6 | 39.8% | -6.9% | -20.0% | 4.5% | 12.9% |
| of which Japan | 69.2 | 22.1% | -6.9% | -25.4% | -2.9% | 4.5% |
| of which Rest of Asia | 55.4 | 17.7% | -6.8% | -11.9% | 15.4% | 25.4% |
| MIDDLE EAST/OTHER | 18.9 | 6.0% | 11.1% | - | 22.1% | - |
| TOTAL | 312.6 | 100% | -9.8% | -15.5% | 7.3% | 13.0% |
Source: Bulgari S.p.A. – Not audited preliminary results.
The manager in charge of preparing the corporate accounting records, Alberto Nathansohn, declares that pursuant to paragraph 2 of article 154 of the Consolidated Finance Law the accounting information contained in this release corresponds to the books, records and accounting entries.
For further information
| Media Relations | Relations with analysts/investors |
| 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 |