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.
“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)