UPDATE 1-Bulgari reduces loss, cautious on 2010

* Q1 net loss 8.3 million euros, vs forecast 10.45 million

* Revenue 199 million euros, vs forecast 192.6 million

* CEO says cautious on 2010

* Shares close up 4.4 percent before statement

(Adds detail, CEO interview quotes, shares)

MILAN, May 10 (Reuters) - Bulgari SpA BULG.MI Chief Executive Francesco Trapani sounded a cautious note on prospects for a full-year recovery after the Italian jeweller narrowed its loss in the first quarter, helped by higher margins and cost controls.

The Rome-based company, best known for its jewellery, watches and perfumes, said its net loss narrowed to 8.3 million euros ($11.1 million) from 29.3 million a year before. Analysts had on average expected a loss of 10.4 million, according to a poll of six analysts by Thomson Reuters I/B/E/S.

First-quarter revenue rose 11.8 percent, or 12.6 percent at comparable exchange rates, to 199.1 million euros, slightly above estimates.

"There was a strong improvement from the first quarter of 2009 but results are far from being satisfying due to the current economic situation," Trapani told Reuters.

Trapani confirmed his previous forecast of a mid-single digit growth for sales for 2010, but added he was not able to make a more precise prediction.

"We live in a world so volatile, so unpredictable, from the Greece bailout to the ash cloud, that it has become impossible to make predictions for 2010", Trapani said. "We remain optimistic, but cautious," he added.

Trapani said prices for all products rose in April, when sales were up 15 percent, and are expected to increase by an average of 3 percent in 2010, also reflecting higher diamond prices.

Several luxury groups such as Hermes (HRMS.PA), LVMH (LVMH.PA) and Gucci (PRTP.PA) have reported rising sales in the first quarter, while U.S. rival Tiffany & Co (TIF.N) has forecast operating margins would match all-time highs reached in 2007. [ID:nLDE6450Z4]

Bulgari shares closed up 4.4 percent at 6.12 euros before the company's statement. (Reporting by Antonella Ciancio and Cristina Carlevaro; Editing by David Holmes) ($1=.7453 Euro)