Bulgari Reports Sharp Rise in 2003 Net Profit

Italian luxury retailer Bulgari said its net profit jumped 21 percent last year on 2002 to 92 million euros while sales increased a more modest five percent to 759 million euros.

All product categories apart from watches posted a rise in sales. At comparable exchange rates, jewelry sales rose 13 percent while watch sales fell around 10 percent.

The company didn’t provide any explanation to the fall in watch sales.

Bulgari reported significant sales increases in the Far East - over 20 percent higher at comparable exchange rates - despite the strong negative impact of the SARS epidemic in the second quarter of the year.

Sales to the US also rose - over 9 percent at comparable exchange rates for the year and 21 percent in the fourth quarter. The increases confirm the recovery in the US market, Bulgari says.

Japanese sales figures were also strong, with a rise of 11 percent.

Meanwhile, sales in Italy and in the rest of Europe remained essentially unchanged compared to 2002, due to the negative economic outlook and to the reduction of tourism, the strong increase in the value of the Euro and by international tensions.