Jewelry up, watches down for Bulgari

The Bulgari Group reported revenues of $470.8 million for the first half of 2005, a 10.1 percent increase over the previous year and an increase of 11.1 percent at constant exchange rates, which reflect the weakness of the U.S. dollar when compared to the Euro.

Jewelry revenue for the first half of the year reached $198 million, a 6.9% increase (an 8 percent increase at constant exchange rates). Watch segment revenues were $131 million, a 1.2% drop from the same period in 2003. At constant exchange rates income was flat. The Rome-based company said watch revenue will increase in the second half of the year based on the favorable response of new models presented at the Basel Fair.

The company saw its greatest increase in revenues in perfume and accessories categories. Perfume revenues reached 85.2 million, a 22 percent increase over the same period in 2004. Accessories revenues hit $43.8 million, a 34 percent increase.

Revenues from sales in the United States rose by 24.5 percent during the first half of the year, the company reports. Revenues from sales in Japan rose by 17.8 percent for the period. Revenues in Italy rose by 14.6 percent; and 6.1 percent for the rest of Europe.

“The positive trend of jewelry, the core business of the company, is continuing together with the outstanding performance of perfumes and accessories,” said Francesco Trapani, CEO of the Bulgari Group. “The excellent results registered by this latter category encouraged the company to invest and develop more aggressively the accessory business through a project of fully dedicated Bulgari stores in order to exploit at best all the potentialities still unexpressed.”