Could global economic recovery be here? Perhaps. Undoubtedly, luxury companies are posting robust sales and earnings driven by strong Chinese demand.
Bulgari announced nearly a 30 percent sales increase to $394 million with strong growth in all its products globally, especially in China where sales rocketed by 76%.
Not surprising, Asia led the sales surge. Asia accounted for nearly half of all its sales or about $175.3 million.
Sales in the company’s core business, jewelry, soared by 29 percent to $163.4 million, watch sales increased by 22 percent to $72.5 million, accessories sales rose 19 percent to $29.6 million, and perfume and cosmetic sales jumped by 33 percent to $86.1 million.
China is a big deal for Bulgari. Sales has been gaining momentum – consistently rising. Bulgari has opened 20 boutiques in mainland China and 15 more in Hong Kong, Macau, and Taiwan.
Late last year, Bulgari signed an exclusive distribution agreement with Hengdeli Holdings Limited to distribute Bulgari watches through multi-brand watch stores in mainland China. The five year agreement will increase the visibility of Bulgari watches in the Chinese market. Over 50 multi-brand stores that will open over the next five years will carry the brand in major Chinese cities.
LVMH, the French luxury goods powerhouse, is expected to take a controlling stake in Bulgari. The Bulgari family, which holds the majority stake in the world’s third biggest jeweler, will become the second biggest family shareholder in LVMH.
photo credit: bulgari