Aber Planning to Open 16 Harry Winston Stores

Aber Diamond Corp is planning to expand its retail jewelry business quickly in the next three to five years through its 51 percent stake in luxury jeweler Harry Winston to 25 stores from the current nine.

Harry Winston has opened two new boutiques since Aber bought its controlling interest last year.

"A brand like Harry Winston has much broader recognition than a name like Aber, including the equity marketplace," Aber CEO Robert Gannicott told shareholders at the firm’s annual meeting.

"Mines are depleting assets, their ore reserves eventually run out. The value of a luxury retailer is in its ability to sell things at high prices and volume to a broad customer base, and it can do that forever."

Aber is planning to expand in markets where the Harry Winston name is already recognized - the U.S. and Japan - as well as emerging markets such as India, China, Russia and the Middle East, Aber President Thomas O'Neill, who is also CEO of Harry Winston, told the meeting.

O'Neill declined to comment on whether Harry Winston, which has stores in New York, Europe, Japan and Taiwan - would open one in Canada.

Aber is also planning to open an office in Mumbai which its says would be a first for diamond producers.

Gannicott and O’Neil made their comments following the announcement of Aber’s results for its fiscal 2006 first quarter. Aber posted a more than doubling in sales for its first quarter ended April 30 while net earnings more than quadrupled as the firm benefited from strong sales at Harry Winston and operational efficiencies at its Diavik mine in Canada’s North-West Territories.

Sales for the quarter totaled $110.1 million compared with $52.3 million a year earlier.

Net earnings jumped to $13.6 million from $2.8 million in the same period a year earlier.