ITALY. Luxury goods group Bvlgari posted a sales decrease of -2% to €330 million for the first half of 2003. SARS and the war in Iraq were cited as the main reasons for the decline. But the group was quick to point out that at comparable exchange rates, revenues grew by +4% for the period compared with the previous year.
On a regional basis, performances were mixed. Turnover in Italy grew +8% for the first half, while Japan also enjoyed good sales growth (+3% at current exchange rates; +14% at constant exchange rates). And despite the SARS epidemic, the remaining Far Eastern region managed to close the semester with an +11% increase in turnover.
But Europe, the Americas and the Middle East posted revenue declines of
-11%, -14% and -10%, respectively. However, in the US first-half sales rose +3% in real terms (i.e. at comparable exchange rates) – thus confirming that the recovery in the region has finally begun.
In terms of product, jewellery sales performed well in the first half, posting an increase of +4% (+9% in the second quarter), but watch and fragrance revenues decreased by -10% and -19%, respectively. Perfumery should receive a timely boost in September, however, when the new fragrance Omnia hits retail shelves. Accessories continued to grow strongly, registering an impressive +65% growth in the first half.
Bvlgari Group ceo Francesco Trapani commented: “I am very satisfied with the sales results of this first semester of the year, during which we achieved a further sales growth of +4% – despite the war in Iraq, the SARS epidemic and the great uncertainty of the economic environment. Considering the latest sales results of June and July and should an improvement of the economic environment materialize I am confident that an increase in sales volume and profits for 2003 is still achievable.”
