Aug 7, 2008
Download the article
Click here to print
Text size
aA+ aA-

Damiani adjusted net down 40 percent in April-June

Aug 7, 2008

MILAN, Aug 7 (Reuters) - Italian jeweller Damiani posted a 40.4 percent drop in adjusted net profit in the first quarter of the financial year that started on April 1 as revenues fell.

Sales hit 39.2 million euros ($60.62 million), down 8.5 percent from a year-earlier figure adjusted to exclude a one- off gain of 7.6 million euros from real estate operations.

At constant exchange rates, sales were down 8.1 percent, Damiani said in a statement on Thursday.

The high-end jeweller said sales in Japan rose 18.5 percent, while falling 16.4 percent in Italy, where the company earns about two-thirds of its revenues.

A breakdown of the revenue number showed retail sales were up 16.6 percent to 2.5 million euros, while wholesale sales fell 12.9 percent.

"The growth at the retail level is due both to the very good performance of shops directly managed ... and to the positive contribution from new shops," the company said.

Damiani had 56 monobrand shops at the end of June after it opened a Damiani boutique in Los Angeles in the quarter.

Adjusted earnings before interest tax, depreciation and amortisation fell 43.5 percent to 4.5 million euros, partly due to investments that boosted administrative and distribution costs.

Damiani said it managed to keep the cost of materials basically stable in relation to sales, despite the sharp increase in gold prices. (Reporting by Valentina Za; Editing by Andre Grenon)

© Thomson Reuters 2023 All rights reserved.