* Q2 revs fall 20.5 pct
* Says Q2 proved better than Q1
* Own store sales pick up pace in July
(Adds more quotes from CEO interview)
By Marie-Louise Gumuchian and Cristina Carlevaro
MILAN, July 30 Italy's Bulgari BULG.MI more
than halved its quarterly net loss and said sales at its own
stores picked up pace in July despite the global crisis still
hurting demand for jewellery, watches, perfumes and accessories.
The Rome-based company on Thursday posted a net loss of 11.2
million euros ($15.79 million) in the second quarter, compared
with 29.3 million euros in the first quarter, and said it had a
profit in June.
Chief Executive Francesco Trapani told Reuters in a
telephone interview the rise in own store sales in July was
higher than the 3.3 percent growth registered in the second
quarter, a stronger performance than the wholesale channel.
"The percentage rise (in retail sales) compared to July 2008
is more than 3.3 percent," he said.
"Wholesale in general was still weak in July."
Trapani gave no forecasts for the third quarter nor the full
year, saying only "there is a continuous improvement in the
He said destocking had also improved. "In the last 10 weeks,
the situation is normalising for perfumes after very heavy
destocking in the first four months of the year," he said.
"For watches, destocking is not yet finished. I think it is
a problem that will be around for the whole year."
Bulgari, for whom Britain's Kate Moss has modelled, said
second-quarter revenues were 218.3 million euros, down 20.5
percent compared with the previous year.
All its product categories saw falling sales. All
geographical areas posted a sharp slowdown in sales, hit by
shrinking orders in the wholesale channel.
"The United States is a disaster, it is a market that is in
great difficulty. I am not optimistic in general," Trapani said,
adding that Greater China represented "a big opportunity".
LVMH (LVMH.PA), the world's biggest purveyor of luxury
products, saw watch and jewellery sales fall 17 percent to 346
million euros in the first half of the year.
Bulgari is not planning on changing its prices, apart from
some minor previous increases in Britain and Korea. "There is no
intention to change (prices). There were some adjustments where
there was currency devaluation," Trapani said.
Trapani said in the statement Bulgari had redefined its
worldwide organisation and expects this to lead to "considerably
lower" structure costs in 2010 compared with 2009.
Shares closed up 4.68 percent at 4.0275 euros before the
statement came out.
(Editing by David Cowell)