Luxury brand Bulgari presented their financial statements for it’s third quarter 2007 this week. The statements highlighted a turnover of $355 million increased by 13% in comparison to the same period of last year. In the first nine months of the year the turnover increased by 14% at comparable exchange rates from $945 to $1,026 billion.
From July to September 2007 jewellery, core business of the company, registered a significant sales increase, which led to a 20% growth in the first nine months of the year. Watches posted a 4% increase in the quarter and an 8% increase in the first nine months. This performance has been affected in the year by shortages in sourcing some technical components, which resulted in losses of production volume. Bulgary intends to further strengthen its vertical integration in manufacturing during the next months, which will help to overcome this difficulty. The accessories turnover registered a 38% growth in the quarter, also thanks to the success of the Fall/Winter collection, thus recovering the performance posted in the first six months and leading to a 3% cumulative increase in the first nine months.
Looking at the geographical areas, Europe registered a 9% increase in the quarter and a 10% increase in the nine months thus confirming a very strong demand trend. Americas continued to register a growth as well with 20% in the quarter and 24% in the nine months, while Japan, registered for the first time in the year a turnaround with a 9% sales increase which led to a cumulated –3% in the nine months. In the rest of Asia the strong growth trend continued with a 39% increase in the quarter and a 49% increase in the nine months.
Francesco Trapani, Chief Executive Officer of the Bulgari Group, commented : “I am very satisfied with the excellent results of the first nine months of the year and with the outstanding sales trend registered in October. Therefore I am convinced that – in presence of a good sales performance in the coming holiday season and in absence of extraordinary events- the Bulgari Group can achieve a growth for revenues at comparable exchange rates and net profits of about 12% in the full year 2007.”
As of September 30th 2007 the total number of Bulgari Group stores was 236, of which 140 were directly owned stores.