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Bulgari Revenue Hits $231.9M

Bulgari saw its second-quarter revenue jump 13.5 percent on rising demand for jewelry, watches and fragrances around the world.

MILAN — Bulgari saw its second-quarter revenue jump 13.5 percent on rising demand for jewelry, watches and fragrances and an uptick in each of its geographic markets.

Revenue for the three months ended June 30 rose to 192.5 million euros, or $231.9 million, from 169.5 million euros, or $192.8 million, but Bulgari said sales would have grown 14.8 percent at constant currency rates. Sales for the six-month period rose 6.9 percent to 352.8 million euros, or $433.1 million, suffering on a weaker first quarter when revenue lost 1.9 percent.

Full, first-half results, including profits, are due Sept. 13. Dollar figures have been converted from the euro at the average exchange rate for the corresponding periods.

“In the first quarter, we had a higher comparable base than we did in the second quarter, due to SARS and the war in Iraq. Also, the second quarter was boosted by a series of product launches,” Bulgari chief Francesco Trapani said in a phone interview. He said Bulgari’s new white gold and diamond jewelry line, Astrale, and Ergon watch line were selling particularly well and should have an even bigger impact in the second half of the year.

Trapani said the company is on track to meet full-year targets for revenue growth approaching 9 percent with profits increasing at a rate of “a few percentage points higher than that.”

Looking at product categories, second-quarter jewelry sales grew 15.6 percent to 86.8 million euros, or $104.6 million. Watch sales recovered from depressed demand in the past, increasing 10.7 percent in the quarter to 60.1 million euros, or $72.4 million. Revenue from fragrances grew 22.8 percent to 29.4 million euros, or $35.5 million, and revenue from accessories advanced 2.8 percent to 13.3 million euros, or $16.1 million.

Second-quarter sales accelerated in every market, with Europe reversing a negative sales trend in the first three months of the year. Sales in Italy rose 2.8 percent to 26.6 million euros, or $32.1 million, while those in the rest of Europe grew 6 percent to 46.2 million euros, or $55.6 million, as Bulgari cited particularly strong performances in the U.K. and Spain. Trapani cautioned not to interpret the figures as evidence that tourist flows are returning to normal, but rather as a sign that Bulgari is selling more to local customers in their home markets.

This story first appeared in the July 29, 2004 issue of WWD.  Subscribe Today.

Revenue from the Americas increased 26 percent to 25.8 million euros, or $31.1 million. Japanese sales put on 23.4 percent to total 44.5 million euros, or $53.6 million.

Sales from the Far East excluding Japan grew 7.2 percent to 33.6 million euros, or $40.5 million, while those from the rest of the world advanced 29.6 percent to 15.8 million euros, or $19.1 million.