MILAN — A strong holiday season and growth across all product categories in every region helped Bulgari SpA post a 13.2 percent increase in sales for the fourth quarter ended Dec. 31 to 311.4 million euros, or $370.5 million. This compares with sales of 275 million euros, or $356.7 million, in the corresponding period a year earlier.
Sales for the year rose 10.5 percent to 918.7 million euros, or $1.14 billion, from 831.6 million euros, or $1.03 billion. Currency conversions were made at average exchange rates for the respective periods.
At constant exchange rates, sales would have increased by 12.7 percent in the fourth quarter and by 10.6 percent for the year.
Chief executive officer Francesco Trapani said in a phone interview that he was satisfied with the results, which were in line with his expectations. Trapani pointed to the "excellent sales during the holiday season," which confirmed the company's forecasts.
"These figures allow us to be optimistic for the year 2006. We expect to further grow the company in terms of sales and profits in the high single-digit range, a growth of about 8 or 9 percent at constant exchange rates," said Trapani.
Trapani once again dismissed market speculation that Bulgari may be for sale and reiterated the company has "never received offers, never negotiated a sale and is not interested in selling."
In 2005, while accessories showed the most significant growth — a 24.1 percent hike compared with 2004 at constant exchange rates — all categories showed sales increases: jewelry, Bulgari's largest revenue generator, grew 7.5 percent, watches 4.5 percent and perfumes 18.5 percent.
"Accessories are increasingly becoming an important category for us, accounting for sales of about 77 million euros [or $91.6 million]," said Trapani. At the end of last year, Bulgari opened two stores in Japan, in Osaka and Tokyo's Ginza district, dedicated to accessories. Trapani said the company plans to open three or four other accessories stores in Asia and Europe this year. In addition to leather goods and silk ties and scarves, Trapani said Bulgari has expanded the assortment of silver objects, such as pens, key chains and cuff links.The Assioma watch, launched in September, helped drive sales in the category. "Its design is highly unusual, and I believe this unique style helped us hit the mark in a very competitive market," said Trapani.
Europe showed signs of recovery with 15.4 percent sales growth. "We worked well with local communities and were supported by the tourist flow," said Trapani. Sales in Italy also grew 15 percent. Japan showed 17.4 growth, while sales in the U.S. increased 12.5 percent.
In the fourth quarter, watch sales grew 16.5 percent, jewelry 8.2 percent, perfumes 14.8 percent and accessories 11.7 percent. Japan and Europe grew 19.7 percent and 33.6 percent, respectively, with sales in Italy alone rising 8.4 percent. The Middle East showed an increase of 22.2 percent. Sales in the U.S. were in line with the same period in the previous year, up 1.1 percent. Bulgari, however, pointed to a "very challenging base of a 21 percent growth in the quarter of the two previous years" in America.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews