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
