Wednesday, 17 March 2010
We awoke to bad news this morning, with news that Bulgari has announced a first-quarter loss of 29.3 million euros (AU $43.9 million) compared with net income of 22.8 million euros (AU $34.2 million) a year ago.
This loss has been linked to reduced demand for Assioma watches and Allegra jewellery and the fact the company lost money on currency-hedging transactions.
Bulgari’s CEO, Francesco Trapani (pictured), told Bloomberg that “third-party retailers continued to cut inventories of Bulgari goods, and that a return to the company’s growth rate in the boom year of 2007 may not take place until 2012”.
The company also said it renegotiated debt with its banks and will cut costs, spending less on advertising and promotion.
“We are hoping things will be better in the second half of the year,” said Trapani. Planned new products such as Sotirio watches and Blu Due perfume may revive demand.
Click here for a reminder of Bulgari’s fourth quarter sales.
Image courtesy of nytimes.com
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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