MILAN — Bulgari SpA reined in its full-year guidance to the lower end of estimates after second-quarter earnings fell 8.8 percent, hurt by a drop in watch sales and a slowdown in the Americas and Italy.
“Given that difficult macroeconomic conditions in key markets are continuing, I believe it is both reasonable and prudent to restrict the range of the increase in our revenues…operating profit and net profit to the lower band of the guidance already given to the market,” Bulgari chief executive officer Francesco Trapani said.
In March, Bulgari forecast full-year sales, operating profit and net profit increases of between 8 and 12 percent on a comparable exchange rate basis, pending no further deterioration in market conditions.
For the three months ended June 30, net profits fell to 31.4 million euros, or $49.1 million at average exchange, on revenues that gained 4.8 percent to 274.7 million euros, or $429.4 million.
Operating profits declined 19.8 percent to 29 million euros, or $45.3 million.
Revenues from watches decreased 11.1 percent to 65.6 million euros, or $102.6 million, which Bulgari attributed to production problems connected with the late delivery of components and the absence of the entry price line Carbongold, whose sale was completed last year.
Trapani said he was “confident” that these difficulties would be “at least partially overcome” in the second half, and that sales would be “positively affected” by the introduction of new lines, which were well received at the Basel watch fair. Deliveries of these lines will begin in the second part of this year.
Sales of jewelry, which represented the majority of group turnover (more than 40 percent), accelerated during the quarter, gaining 5.2 percent to 118.3 million euros, or $184.9 million. The growth came even though the category was up against a tough comparison: Last year’s first-half results included the extraordinary $13.5 million sale of a piece of high jewelry at the New York flagship in April 2007.
Revenues from perfumes and high-end cosmetics jumped 25.5 percent to 61.2 million euros, or $95.7 million, which the company attributed to the “excellent results” obtained from the launch of the new men’s fragrance Aqua Pour Homme Marine, which hit shelves in June.
Accessories sales rose 2.1 percent to 20 million euros, or $31.3 million.
Despite a 4.5 percent fall to 32.6 million euros, or $51 million, in Italy, Europe as a whole gained 11.7 percent to 108.9 million euros, or $170.2 million, buoyed by “brilliant” results in France and Germany.
Revenues in the Americas fell 21.1 percent to 38.5 million euros, or $60.2 million, although Bulgari noted that the decline should be seen in the context of a 50.2 percent gain in the second quarter of 2007.
In line with expectations, sales in Asia grew 9.8 percent to 109.5 million euros, or $171.2 million, including a 6.7 percent gain in Japan, which accounted for around half the region’s total.
Revenues in the Middle East and other countries gained 10.6 percent to 17.8 million euros, or $27.8 million.
Bulgari released the results after the close of trading in Milan, where the jeweler’s share price dipped 1.8 percent to 6.91 euros, or $10.78 at current exchange.�
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
After showing in front of the Eiffel Tower for his last two women’s ready-to-wear collection, it looks like @anthonyvaccarello may be heading to the Big Apple. Sources say the designer will stage his next @ysl show in NYC on June 6. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion