Damiani's Retail Expansion Drives Sales Growth

RAPAPORT... Damiani Group saw sales edge up in the fiscal first half as theItalian jeweler expanded its retail business in markets outside its homecountry. Total revenue climbed 0.2% to $85.7 million (EUR 69.9million) year on year in the six months that ended September 30, the companyreported last week. Retail sales increased 11% to $46.7 million (EUR 38.1million), outweighing a 10% slide in wholesale revenue. Damiani has stepped up its focus on the retail sector in abid to move its business closer to end consumers, especially those outsideItaly, it explained. As a result, the unit's revenues have increased to 54% ofthe group's total for the first half, compared with 49% a year earlier. Bycontrast, the wholesale business has weakened due to cautious sentiment amongbuyers in Italy, the company added. The retail gains, mainly in Asia, drove a 13% rise inoverseas 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 anegative impact on Damiani's bottom line, it noted. The group's net losswidened to $6.5 million (EUR 5.3 million) from $1.3 million (EUR 1.1 million) ayear ago. The company expects to see a greater return on its investments in thesecond fiscal half, as that period - covering the holiday season - is traditionallystrong for sales, it predicted.