B.zero1, Serpentini, Roth and Genta are hot products.
Jewellery sales at Bulgari rose 14 percent in the luxury group’s third quarter, but watch sales slid by 11 percent during the period to September 30.
Despite its watch division showing a decrease in sales Bulgari said that this quarter had been up against unfair comparables as this year the delivery of new products began in September and continued in the three subsequent months, whereas last year the new launches were already available starting in the second quarter. Bulgari said that by analysing October sales data it found that watch sales have actually grown 6 percent.
The luxury group presented a buoyant update with total sales up 15 percent at current exchange rates. Operating profit rose 45 percent in the period while net profit rocketed 138 percent. Gross margin was down slightly in the quarter to 63 percent.
Bulgari chief executive Francesco Trapani said: "I am satisfied with the third quarter results – particularly with the excellent performance of jewellery and accessories and the notable improvement in profitability – which are in line with our plans and clearly show that the company is continuing to improve, both in terms of product and image and in terms of investment control, indebtedness, inventory and costs.”
In terms of products Bulgari said that sales of its B.zero1 and Serpentini jewellery collections had been “excellent” and that it had received an “excellent reaction” to its women’s Serpenti watch collection. It also said that the Bulgari Roth and Genta watches were “remarkably well-received” by shoppers at its own boutiques.
Bulgari noted that sales at its watch and jewellery wholesale arm are beginning to recover after an onslaught of destocking last year.
Geographically, Bulgari’s total sales were strongest in Italy where they rose 24 percent and Europe where they rose by 11 percent. Elsewhere, sales in the US dropped 7 percent, fell 1 percent in Japan, increased 15 percent in the rest of Asia, rocketed 24 percent in Greater China and fell slightly by 2 percent in the Middle East.
Bulgari said that it is optimistic for the festive trading period. Trapani said: “October’s consolidated net revenues, which comprehensively grew by 12 percent at comparable exchange rates as a sign of the excellent response to the new product launches, together with the greatly impactful initiatives and campaigns which will also continue in the next few months, make me optimistic for the Christmas sales season and therefore lead me to confirm the guidance previously provided to the market."