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Damiani Revenue Up Amid Retail Growth
Jan 23, 2018 4:25 AM
By Rapaport News
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RAPAPORT... Damiani Group saw sales edge up in the fiscal first half as the
Italian jeweler expanded its retail business in markets outside its home
country.
Total revenue climbed 0.2% to $85.7 million (EUR 69.9
million) year on year in the six months that ended September 30, the company
reported last week. Retail sales increased 11% to $46.7 million (EUR 38.1
million), outweighing a 10% slide in wholesale revenue.
Damiani has stepped up its focus on the retail sector in a
bid to move its business closer to end consumers, especially those outside
Italy, it explained. As a result, the unit’s revenues have increased to 54% of
the group’s total for the first half, compared with 49% a year earlier. By
contrast, the wholesale business has weakened due to cautious sentiment among
buyers in Italy, the company added.
The retail gains, mainly in Asia, drove a 13% rise in
overseas revenue to $30.3 million (EUR 24.7 million). Italian sales dropped 6%
to $55.4 million (EUR 45.2 million), reflecting the weaker wholesale demand.
However, the costs of the global expansion have had a
negative impact on Damiani’s bottom line, it noted. The group’s net loss
widened to $6.5 million (EUR 5.3 million) from $1.3 million (EUR 1.1 million) a
year ago. The company expects to see a greater return on its investments in the
second fiscal half, as that period — covering the holiday season — is traditionally
strong for sales, it predicted.
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Tags:
asia, damiani, Damiani Group, italy, Jewelry, Rapaport News, retail, wholesale
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