Bulgari to Cut Jobs & Close Stores as Profits Plummet
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%.