Bulgari to Cut Jobs & Close Stores as Profits Plummet

by Jared Paul Stern (RSS feed)
Mar 12th 2009 at 11:01PM

Famed Italian jeweler and luxury goods firm Bulgari plans to cut jobs, close stores and pare down its collections in the wake of a disastrous 45% drop in profits. The company, which was founded in 1884, has seen its watch business suffer badly in the economic downturn, with sales plunging 10.6%, Vogue UK reports. Accessories dropped 1.5% and jewelery, the company's core business, dropped 2.5%. On the plus side, perfume sales have increased by 12%, perhaps an indication that consumers see fragrance as a relatively affordable luxury. Sales in America and Europe were particularly poor, though the Middle East was up by 9%.

The company, a red carpet favorite of stars like Halle Berry, Keira Knightley and Kate Hudson, describes its jewelry as "pure luxury obtained by means of daring combinations, precious materials, purity of design and meticulous attention to detail." "[This year] will be a very difficult year," states Bulgari CEO Francesco Trapani, adding that future earnings are impossible to predict. "We don't feel able to give a number of any meaning because the situation is so very complicated." He is no doubt feeling somewhat overextended on the retail side with over 230 locations worldwide.

Gallery: Trouble For The Jewelry and Watch Industry

Tags: Bulgari, Bvlgari, Italian fashion, ItalianFashion, Keira Knightley, KeiraKnightley

Filed under: Jewelry, Timepieces / Watches, Cosmetics and Fragrance

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Reader Comments (Page 1 of 2)

Todd Mar 13th 2009 10:27PM

Percentage-wise, the drops in sales are tiny. Wake me when it goes down 30% and more like some retailers I know who would be happy with only a 10.6% drop in sales. Then we'll talk.

cannotbelievethis Mar 13th 2009 9:51PM

It's sad really, but you live big, you lose big.

mickey Mar 13th 2009 10:30PM

the perfume for females is delicious--like pink lemonade

ZAK Mar 13th 2009 11:52PM

Is it possible that people are discovering they can get by without expensive jewelry and watches? Could this be true? Amazing!

Keri Mar 14th 2009 8:52PM

Very well put!! Thats about as Bright as paying $200 for Athletic shoes to wear around..

jbjg24m Mar 14th 2009 6:35AM

NEVER HEARD OF THIS STORE BEFORE !!

Blue Kentucky Girl Mar 14th 2009 6:38AM

"Live big ~ lose big"?? That's mean.
Sure hope they don't stop the perfume line .. it is my sister's favorite. Sorry to hear this about yet another company that provides us with one of life's little luxuries ~ wonderful scents.
Blue Kentucky Girl

Master Shake Mar 14th 2009 7:56AM

This is a GOOD thing - the more of these disgusting chain stores that die, the better for small business! This is exactly what America needs, instead of the same stupid dozen stores in every f*cking mall from coast to coast.

Elliott Mar 14th 2009 8:45AM

I agree . The chains have had it to good for to long!

Rollando Mar 14th 2009 2:02PM

Was it necessary to shut down the whole company? I do not think they tried hard enough. They easily could have downsized by just closing their non-profitable stores. The percentages does not seem much to warrant closure of the business, unless they are trying to get out of paying high priced rent on the stores locations. I would not be surprised if they open up under another name.

michael lynch Mar 14th 2009 9:22AM

Obama is at it again, "Spreading the wealth!"

Ladyhawksz Mar 14th 2009 1:47PM

This is an Italian company - I rather think they are affected by the downturn of the global economy, something which has nothing to do with President Obama. It is very naieve to think that anything President Obama has done in his 50 days in office has influenced the measurable downturn in sales, which is always a measure of past performance rather than current or future factors. The past all belonged to President Bush for the preceding 8 years. Might be a tad early to lay this one at President Obama's feet. As I recall, he and McCain had to rush back to Washington BEFORE while still candidates to function in their roles as Senators trying to help President Bush bail his own mess out with the first stimulus, which clearly did not work at all, and only made people made, because it let high paid executives on Wall Street use the bail out money to pay themselves FIRST, thus insuring that a second (hopefully better monitored) stimulus would be needed.

Let's keep our history in mind before laying blame anywhere. Frankly, it is so complex an issue, that likely the blame is not solely on either president, but has far-reaching tentacles of greed that are stretched throughout our American financial world and the global financial world.

jeff Mar 15th 2009 7:59PM

you are a retard

Leahart Mar 14th 2009 9:26AM

Times have changed and the glamour of yesterday is decreasing steadily. Most people used to dress to impress. Nowadays they wish to blend in more with blue jeans and T-shirts. Maybe Bulgari would survive by going into the blue jeans business.

David Mar 14th 2009 10:05AM

I remember window-shopping at their store in Rome. Truly the most beautiful and imaginative jewelry I have ever seen. It's easy to forget that even the most exclusive shops hire folks like us.

Tim Mar 14th 2009 11:13AM

Tell me Wal Mart is going under and I will truely be happy. Long live the small mom and pop shops they offer true value and variety. Of course not everyone would have been to a Bulgari store most are in high end areas like Rodeo drive.

Anne Mar 14th 2009 11:14AM

I could never afford this store to be honest, I am one of the poor of this nation, but I didnt vote for Obama, and he is the cause of the people in the US losing their wealth...... as much as I would like to be rich , I do not think Obama should be destroying the rich, I only make 34,000 a yr,
But I feel like the people who have worked to be rich should be able to keep their money, I looked at the prices of the jewely and they cost as much as my car did, which by the way is not paid off, at this point in time I am scared about losing one of my jobs, I would not be able to buy food if I did

pj Mar 15th 2009 4:21PM

the rich are not losing money, someone who makes over 100,000 will pay less taxes then you do at your 34,000 , and that is what is not fair to the real working class people.
hence the expression the rich get richer the poor get poorer.

John Mar 14th 2009 11:23AM

Oh yes, screw the rich. They are getting what they deserve. No one stops to consider all of the working class people who make the goods that wealthy people purchase. When the rich stop buying, those people loose their jobs. I wish that all the wealthy folks in this country would stop spending completely for just a month or two. It would be an economic disaster and you all would finally get an idea just how much your life depends on these "evil" people.