📝 Gismondi $BIT:GIS (#1) Asian Markets Offset U.S. and European Sales Decline
Gismondi 1754 review of report published on July 23rd 2024 announcing H1 2024 preliminary results
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Update H1 2024 Results
Today, Gismondi announced preliminary results for H1 2024. The information is sourced from the announcement on 23/07/2024 and data obtained after following the company for more than 2 years. The company will likely provide more detail when it releases its half-year report.
Executive Summary
Gismondi 1754, a luxury jewelry company listed on Euronext Growth Milan, reported a 10% decline in total sales for the first half of 2024, totaling €7.08M compared to €7.88M in the same period of 2023. Q2 2024 revenues were €2.70M.
The company attributed the overall decline to a range of economic challenges, including reduced consumer spending, persistent inflation, rising interest rates, and geopolitical uncertainties, particularly impacting Europe and North America.
Source: Travel and Leisure Asia, photo of Portofino, Italy
Growth Initiatives
Gismondi 1754 has been proactive in its strategic initiatives to navigate these turbulent times. The first half of the year saw the opening of a new wholesale channel in the Far East, facilitated by a multi-year agreement with Ippo Group of Hong Kong. This partnership led to the opening of a new shop in Tokyo, securing an initial order worth €980k. Further expansions are planned, with new shops set to open in Macau in 2024 and Cambodia in 2025.
In the United States, the company experienced a temporary setback due to the transfer of activities from previous agents, Sobe Luxury, to its subsidiary, Gismondi USA. This transition required the return of all international stock to Italy, causing a three-month sales halt. However, operations have since resumed, with regular business now continuing with major clients Neiman Marcus and Saks Fifth Avenue.
The directly managed store in Portofino has been a bright spot, showing a 35% increase in sales and attracting a diverse clientele.
Massimo Gismondi, CEO of Gismondi 1754, commented on the company's performance and outlook:
At a time when socio-political uncertainty is affecting Europe and America, reducing consumer spending, we believed it was crucial to continue our growth process. We have dedicated energy and investments to consolidate our internal organization, particularly in the American market, and to expand our presence in various markets, especially Asia, where we have seen encouraging results. Thanks to these actions, we have navigated the period of global change and contraction with confidence and can look to the future optimistically.
Key Figure Breakdown
Gismondi’s sales performance across various channels and regions offers a detailed view of its market dynamics:
Retail: Increased from 13% of total sales in June 2023 to 16% in June 2024.
Wholesale: Grew from 47% to 58%.
Special Sales: Dropped from 28% to 18%.
Franchising: Declined from 13% to 4%.
We can easily observe the evolution of breakdown by store, type of sale, and geography (2019-2024 Q2). Starting with quarterly sales (without accruals), on a LTM basis:
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