Harry Winston Returns to Profit, Boosted by Rough Diamond Prices

A combination of higher prices and 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.”