MILAN — Bulgari SpA confirmed a loss in the first quarter after revenues fell 23 percent, although the Italian jeweler said sales improved in April.
After warning shareholders last month that red ink was to be expected, Bulgari on Tuesday reported a loss of 29.3 million euros, or $38.3 million, from net profits of 22.8 million euros, or $34.2 million, in the first three months of last year. Revenues fell to 178.1 million euros, or $233 million. The decline was deeper than analyst forecasts.
Dollar figures were converted at average exchange rates for the periods to which they refer.
Bulgari chief executive officer Francesco Trapani attributed the slump to “persistence of the crisis on the worldwide markets.” He said sales in directly owned stores had improved in April, due largely to demand for jewelry, the company’s core business, as had sales via third-party distributors, but “to a lesser extent.”
Net debt increased to 339 million euros, or $443.4 million, from 304 million euros, or $428.6 million, as of Dec. 31. Bulgari said it had consolidated 53 million euros, or $72.2 million, of debt, with maturities ranging from 18 months to 10 years, and signed a preliminary loan agreement with a pool of banks for 180 million euros, or $244.8 million, with a three-year maturity. The agreement will be concluded by the end of the month.
All product categories registered sales decreases worldwide, which the company attributed to the financial crisis and “the strong de-stocking activity in the wholesale channel, [which] has significantly penalized” performance.
Jewelry sales fell 15.3 percent to 79.7 million euros, or $104.3 million, while sales of watches decreased 30 percent to 42.1 million euros, or $55.1 million. Perfume and cosmetics sales declined 25.6 percent to 35.1 million euros, or $45.9 million, although Bulgari noted the category had increased market share.
Accessories sales were hit hardest, falling 33.5 percent to 14.2 million euros, or $18.6 million, although revenues remained “substantially stable in Bulgari stores exclusively dedicated to this category or in twin stores,” the company said.
By region, sales were down 36.5 percent in the Americas, 16.8 percent in Asia and 24.1 percent in the Middle East. Sales fell 25.5 percent in Europe.
Trapani told WWD in March that Bulgari would cut jobs, reduce the number of products and close unprofitable stores this year after the company’s earnings fell 45.1 percent to 82.9 million euros, or $122 million, in 2008. He reiterated that Tuesday, and said the reduction in costs and investments was “in line with our expectations.”
Bulgari released the quarterly results after the close of trading in Milan, where the company’s stock fell 2.4 percent to 4.15 euros or $5.65.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)