MILAN — Bulgari SpA registered a 5.1 percent drop in fourth-quarter revenues to 297 million euros, or $436.5 million, hurt by heavy destocking in the wholesale channel and ongoing slow sales in Japan and the U.S. At comparable exchange rates, sales would have declined 2.7 percent.
Chief executive officer Francesco Trapani said he was “particularly satisfied” with sales in directly owned stores, which grew 12 percent at comparable exchange rates in the last three months of the year.
The ceo expects the destocking in the wholesale channel, which he described as “massive,” to continue throughout the current year, “although to a lesser degree in the jewelry and watch segments, while de-stocking in the perfume and accessories segments should be complete.”
All product categories registered sales decreases in the quarter except the core jewelry business, where sales inched up 0.3 percent to 129.9 million euros, or $190.9 million, accounting for 43.8 percent of revenues. Sales of watches declined 4.5 percent, while accessories fell 19.2 percent. However, the company said watch sales in directly operated stores grew 20.2 percent at comparable exchange rates. Perfumes and cosmetics dropped 11.1 percent to 71 million euros, or $104.3 million, the second largest category for the brand, accounting for 23.9 percent of sales. Sales from Bulgari’s hotel venture fell 6 percent.
Dollar figures were converted at average exchange rates for the periods to which they refer.
Geographically in the fourth quarter, Japan posted a 27.3 percent drop in sales. While admitting Japan “really suffered,”Trapani said in a conference call with analysts he does not anticipate any changes in the retail network in that region, but that the company is taking appropriate steps, working more on “product assortment, closer to local need” and focusing on being “more dynamic in the entry price lines.”
Revenues in the U.S. also suffered, registering a 17.3 percent decline, while sales grew 0.7 percent in Europe. “The U.S. was very weak for most of the year, but we saw business pick up in the last quarter and especially in November and December — a very good sign,” said Trapani. The rest of Asia showed a positive performance, with sales rising 18.6 percent, as did the Middle East and other areas, growing 2.5 percent. In the full year 2009, the rest of Asia accounted for 23 percent of sales, followed by Japan, accounting for 19 percent. Trapani said Greater China has grown to account for 15 percent of sales, and is larger than the U.S., which accounted for 12 percent of revenues.
Trapani said “also in light of the 12 percent sales increase at comparable exchange rates posted by directly owned stores in the first three weeks of the year,” it was “reasonable to expect that 2010 will be better than the prior year.”
The company is slated to release full 2009 results, including profits, on March 15.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)