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 2 of 2)

Sara Mar 14th 2009 11:41AM

The stores we love" go away..something replaces them..don't worry..it's only temporary...Isn't It ?

M Mar 14th 2009 12:00PM

From reading the anger on these posts it sounds like a class war. Sad. Now is the time all Americans should pull together so that we don't turn into a communist nation that will take over all business and dissolve any idea of an AMERICAN DREAM.

class4ever Mar 14th 2009 12:33PM

The glamour fashions are totally out. Now they are selling alligator skin sneakers, thin cheap fabric blue jeans and lots of tee-shirts. Kids are licking tyhjeir fingers after they eat rather than using napkins. Anybody hear about President Bush? What ever happened to him?

racewaybob Mar 14th 2009 12:11PM

I guess they'll have to postpone their campaign to properly spell the name on the signs. WTF is the deal with the "V" in "BVLGARI" anyway? Seriously, I don't have a lot of sympathy for this pretensious snobitorioum. Their overprivileged customers will just have to tell time with their $15 Timex'...which work just as well.

KG Mar 14th 2009 12:14PM

What else is new? Retailers are the front-line casualties in a worsening economy. Our main concern is the continuing deterioration in the manufacturing sector. Retailers can always recover; manufacturing can not once they are shuttered.

contractor Mar 14th 2009 12:19PM

no surprise, this store had problems and did no want to pay their contractors building all of the stores in the beginning.

AL Mar 14th 2009 1:30PM

I worked for a company that pissed and moaned when things turned sour, but the owner and his wife bought a new car and had a new kitchen installed when he was poor mouthing all the way to the bank. He would raise prices when he lost business to make up for the loss of business. Trust me, the rich know how to play the system. His sons did the same thng, so please don't tell me how the rch keep the rest of us working slobs. They get the tax cuts and the write offs and then pocket the money. They lose nothing

BigDL52 Mar 14th 2009 2:55PM

Ladyhawksz says dont blame Obama, blame this on President Bush......When Bush became President in 2001, and after one month his popularity dropped due to a reecession did you say dont balmae President Bush, its just a month, the blame goes to BILL CLINTON who he inherited this from?? I thik not!

cb1972 Mar 15th 2009 4:58PM

FINALLY someone speaks the truth!! The last four years of the CLINTON administration were a disaster!!!

Dick Mar 15th 2009 5:00PM

This is for racewaybob, In ancient times when stone cutters chisled their messages in granite it was easier to carve a V when a U was needed. You of course can see why... Can't you? No? Too Bad!

tim Mar 15th 2009 5:08PM

I love it when i hear another rich person lost millions. make me so darn happy. greed finally catches up with you. for all us poor people give a big horaaaaaaaaa for the rich losing millions

Mike Mar 19th 2009 5:01PM

At Lenox Square Mall in Atlanta, during the 2001 recession a cheap tie shop closed... and we got Judith Leiber. During the 2008 recession Leiber closed... and we got a big Bulgari store.

I don't get it - when the economy is in the dumps, the stores at the mall go upscale?

I've never shopped there, but a hotel I stay at frequently has their White Tea body products, which are terrific. Not terrific enough for me to buy on their own, but they're really nice...

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