Lazare Kaplan Fiscal Earnings Fall Over 71%

DTC Sightholder Lazare Kaplan International’s net income fell to $1.5 million for the fiscal year from $5.2 million in the 2005 - 2006 fiscal year. The company reported shrinking gross margins on polished and rough diamond sales.

For the fiscal year and fourth quarter ended May 31, LKI net sales totaled $528 million and $135 million respectively, an increase of 25 percent and 4 percent compared to the same periods last year. According to a company release, the increase in net sales for the fiscal year and fourth quarter 2006 reflects, “Increased sourcing and distribution of rough diamonds partially offset by lower sales of polished diamonds.”

Polished diamond gross margin for the fiscal year and fourth quarter totaled 13.8 percent and 11.3 percent, respectively, compared to 16.2 percent and 15.9 percent for the comparable prior year periods.

Rough diamond gross margin for the fiscal year and quarter was 2.4 percent and 2.1 percent compared to 3.5 percent and 2.3 percent for the same prior year periods...

Fourth quarter net income was $0.5 million, compared to $0.6 million in the comparable period last year.