Harry Winston Q2 Net Earnings Leap Nearly 150%
September 10, 08
Harry Winston Diamond Corporation posted a 7 percent increase in consolidated sales in the second quarter, totaling $186.1 million.
Earnings from operations reached $73.4 million and net earnings leaped nearly 150 percent to $49.9 million, HWDC said in statement released on Wednesday.
Earnings from the Diavik diamond mine production increased 27 percent to $67.5 million in the second quarter despite a 23 percent decrease in production. The company’s 40 percent share of production was one million carats, down from 1.3 million the year before.
Rough diamond sales of $105 million were unchanged from the prior year as higher diamond prices compensated for the reduced volume.
The company raised prices again at its most recent sales week. Buyers told IDEX Online that prices of some items were hiked by as much as 10 percent over the past few months.
The retail segment recorded a 19 percent increase in sales to $81.1 million.
“Our businesses in Asia, Europe and the Middle East have been sufficient to offset the general market softness in the US and Japan,” HWDC President Thomas J. O'Neill said about the company’s retail sales, adding that this contributed to a strong retail finish in the quarter.
Total gross margin at the diamond miner and luxury retailer was 23 percent.
The company noted that net earnings in the second quarter of 2007 were reduced by an $11.8 million foreign exchange loss resulting from a stronger Canadian dollar against the U.S. dollar.