ITALY. Bulgari Group achieved “extremely positive sales results” for 2004 with a +17.5% upswing in net profit to €108.3 million and a +12.1% pick-up in turnover to €827.7 million. Japan was the star market, with a +27.2% leap in sales.
Operating profit stood at €134.2 million, up +14.8%, buoyed by careful optimisation of processes, a recovery in efficiency, and a moderate increase in operating costs, said the company.
The sales trend was “excellent” for jewellery, up +14.5%, perfumes, up +15.5%, accessories (+13.8%) and watches (+8.7%).
Japan experienced an “outstanding” sales trend, according to Bulgari, up +27.2%, the US, up +22.4%, the Middle East (+15.7%) and Asia (+8.1%). Europe was stable and maintained satisfying sales volumes despite weak tourist flows, thanks to the good sales performance with local clientele, said the firm.
During the year, Bulgari closed its store in New Bond Street, London, UK, and opened a new flagship store in the capital in November 2004. The store in Fifth Avenue, New York, will be enlarged in the second half of 2005.
Promotion and advertising climbed +19.5% in 2004 to €96.4 million (11.6% of turnover), in line with the investment strategies of the group and to support the important launches for all product categories made during the year.
Commenting on the results, Francesco Trapani, Chief Executive Officer of the Bulgari Group, said: “They are excellent results – the best in the company’s history – achieved in an economic and political context still difficult but with significant signs of recovery on a worldwide basis for the whole luxury sector.”
The group intends to grow aggressively through new product launches in all categories, the enlargement of the distribution network and an increase in investment in communication, Trapani added.
Trapani said he was confident that in 2005 Bulgari would register a sales growth rate of around 10-12% at comparable exchange rates and an increase in profits higher than the one expected for revenues.
Bulgari is one of the global players on the luxury market with a network of 194 stores. The group is controlled by the Bulgari family, holding about 52.0% of the share capital. The remaining 48% floats on the Milan Stock Exchange.
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