Sunday, 15 March 2009

Bulgari Profits Slump As Customers Watch Their Spending – 11/3/09

Things could be a lot better for Bulgari SpA with reports that profits fell 45 percent last year. According to a Bloomberg article, watch sales slumped the most in their portfolio, 11 whole percent, while jewellery slipped 2.5 percent and accessories declined 1.5 percent. On the plus side, perfume sales rose 12 percent.


As watches disappear from people’s wish(wrist)lists, Bulgari CEO Francesco Trapani has put all store openings on hold. He also said that jobs will be cut significantly, unprofitable stores closed, inventory reduced and the number of products decreased.


But it’s not just Bulgari watches that have fallen out of favour. In January, Swiss watch exports had their biggest monthly decline in at least 20 years. So, will the watch woes continue for Bulgari? It certainly seems likely, but only time will tell...

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au