Bulgari Group reported its net profit fell 4.6% to 22.8 million euros (USD 35.5 million) in the first quarter of 2008 due to increased operating costs and weak sales in Italy and America.
The group’s total revenue for three months ending on March 31 rose 3% and reached 231.7 million euros (USD 360.9 million) since sales in all product categories registered a growth trend. Jewelry sales were up 0.4% (94.4 million euros or USD 147 million); watch sales grew 2.8% to 60.2 million euros (USD 93.77).
Bulgari reported a 2.7% increase in its European sales despite a 14.8% sales drop in Italy. Sales in America slowed 8.9%, while sales in Asia grew 6.4%, including 11.4% in the Middle East.
Total operating costs went up 11.8% reaching 133.7 million euros (USD 208.26 million). Francesco Trapani, Bulgari CEO, said the results were not inconsistent with the company’s expectations and were confirmed by the “outstanding orders recorded at the Basel Fair.” According to his forecast, Bulgari’s net profit will increase between 8% and 12% (at comparable exchange rates) during the current year.
The Swiss Richemont Group increased its sales 10% in the full year ended 31 March 2008; the operational profit of its luxury divisions grew 21%.
The Group’s member Cartier reported stable growth in all the geographical regions of business except Japan, where growth was limited. Van Cleef & Arpels also had a high sales rate, although showing much lower financial results.
The Group’s operational profit increased 15% and totaled USD 1.2 billion, while at the same time operating margin was 29% or up 1% over the last year indicator.
Europe remains the Group’s most important market, with sales representing 43% of its turnover. Sales growth was very strong in the APR, particularly in China and Hong Kong. Overall sales in the region represent 25% of total sales.
The Americas region reported good underlying growth for the year as a whole; sales in the continent represent 19% of total sales.
The Japanese market was challenging throughout the year, with local currency sales in the fourth quarter being slightly below the prior year’s levels. Sales in Japan now represent 13% of total sales.
Sales and revenues of Harry Winston Diamond Corporation grew in the first quarter of the 2009 fiscal year due to the success achieved in the company’s trade segment on the international market.
“Transactions to Asian, Russian and Middle Eastern clients more than offset the decline in the US and continue to grow as a proportion of our business,” Thomas O’Neill, President of Harry Winston said.
Trade segment
Harry Winston’s retail sales recorded a 27% increase for the quarter rising to USD 74.7 million. Sales in Asia were up 52% (USD 18.1 million) and sales in Europe grew 42% (USD 31.7 million). Sales in the U.S.A. increased 2% and represented USD 24.9 million.
Operating loss for the quarter amounted to USD 2.4 million (vs. USD 1.1 last year). As the company explained, this was due to expenses on retooling the watch production facility in Geneva.
Cost of goods sold increased 34% to USD 41 million.
The company plans to raise sales 15% in the 2009 fiscal year.
At present, there are 18 Harry Winston boutiques operating across the world: five in Japan, three in the rest of Asia, three in Europe and seven in the U.S.A.
