Harry Winston Rough Sales Double, Profit Triples
June 07, 12
(IDEX Online News) – Harry Winston Diamond Corporation posted a 34 percent sales increase in the first quarter, boosted mainly by selling more rough diamonds and better retail sales.
Net profit for the first quarter ending April 30, 2012 was $11.6 million compared to $3.6 million in the first quarter of the prior year.
The company more than doubled its rough diamond sales to approximately 1 million carats, but sold it for much less, about $88 per carat on average compared with $132 p/c last year. The lower price was primarily the result of the sale of lower priced goods held in inventory since October 2011.
According to the company, a decision to hold back some higher priced goods in the first quarter of fiscal 2013 due to an observed imbalance in the rough and polished diamond prices for these goods was another reason for the lower averaged achieved price.
Rough diamond production at Diavik for the calendar quarter ended March 31, 2012 was 1.6 million carats compared to 1.4 million carats in the first quarter of the prior year.
Luxury sales increased 26 percent to $103.5 million in the quarter compared to $81.9 million in the first quarter of the prior year. The increase was primarily driven by positive mix with increased sales of higher-margin access and core products, the company said.
"Jewelry and timepiece sales demonstrate our success in broadening the reach of the brand beyond reliance on a small, ultra high end market," said Robert Gannicott, Chairman and CEO.