This Just In: Jewelry Retail Sales Are Improving

Image Courtesy of Edahn Golan

Image Courtesy of Edahn Golan

Author: Edahn Golan

The most pressing fundamental issue for the global diamond industry today is the decline in consumer demand. Hopefully, this is changing, as US retail sales of fine jewelry have posted several consecutive rises recently, signaling a turn for the better.

In August of this year, fine jewelry sales increased 2.4% year-over-year, the fourth consecutive month of increases. Fine jewelry sales totaled an estimated $4.9 billion and overall jewelry and watch sales an estimated $5.5 billion.


This level of sales is significant in a number of ways: first, because it is already a clear trend. When sales increased year-over-year in May for the first time in five months, it might have been a fluke. When trade figures are first published, they are preliminary and tend to be later revised. However, unless there is a major revision that updates figures a few years back, these figures are final and very solid.

Another reason these figures are significant is the month-over-month trend. It is in sync with buying trends of past years showing that even if the figures are revised a little up or down, they are still in line with consumer behavior.

Read more at: Edahn Golan


Buying and Crying, the Longest Diamond Recession

Source: Edahn Golan

Author: Edahn Golan

Sometimes, when talking with Sightholders, they have a strong, even passionate opinion about their Sight supplies, prices and the state of the market. This happens at times of instability. At other times, their views are quite moderate, yielding to the market and everything that is happening in it at the moment. However, during a turbulent period, it is very rare when Sightholders remain subdued or accepting of the situation, as it is now.
Currently, it is difficult to assess the size of De Beers’ Sights. The consensus among brokers is that De Beers offered about $600 million worth of rough diamonds, and another $50 million were requested as ex-plan. There was no clear trend to the prices, although many changes were made – both up and down.
Read more at: Edahn Golan website

Harry Winston Returns to Profit, Boosted by Rough Diamond Prices

We publish courtesy of IDEX Online

Author: Edahn Golan

A combination of higher prices a nd an increase in the volume of sales led to an 89 percent increase in rough diamond sales by Harry Winston Diamond Corporation in the second the quarter of the fiscal year. The firm sold $86.8 million worth of rough and had retail sales of $66.9 million.

Harry Winston reported consolidated sales of $153.7 million, rising 62 percent from last year. This resulted in earnings from operations of $28.9 million, compared to a $3.9 million loss in the same quarter of the prior year.

The increase in rough diamond sales was a result of a 62 percent increase in rough diamond prices and a 17 percent increase in the volume of sales in the quarter.

Harry Winston’s share of rough diamond production was 0.65 million carats compared to 0.57 million carats, 14 percent higher.

Retail sales increased 37 percent to $66.9 million. Sales in Europe increased 40 percent to $24.7 million, sales in Asia increased 40 percent to $22.6 million and U.S. sales increased 31 percent to $19.6 million.

Consolidated net income for the second quarter was $16.5 million compared to net loss of $24.5 million in the second quarter of 2009.

“Both mine production and rough diamond sales increased in parallel with the growth in retail sales from our network of international stores particularly at the high end,” said Chairman and CEO Robert Gannicott. “We expect further growth in retail sales supported by renewed marketing efforts as customers seek out true craftsmanship.”