Harry Winston Diamond Corporation announced an increase of 51% to $180.4 million in consolidated sales in its third quarter. Rough diamond sales increased 134% to $84.8 million. The diamond company posted a $3.4 million profit for the period, Israelidiamond.co.il reports citing IDEX Online.
The increase in rough diamond sales resulted from a 286% increase in the volume of carats sold during the quarter.
The company sold approximately 880,000 carats at a low average price of $96 per carat, dropping 39% year-over-year.
The company explained the decrease in average price as a result of selling a more smaller-size diamonds due to an improved market for these goods.
"The rough diamond market has recovered its poise as optimism returns in America, still the world’s largest consumer of diamond jewelry," said Chairman and CEO Robert Gannicott.
Harry Winston's 40% share of production for the quarter was 770,000 carats.
The Diavik diamond mine's full-year target production is expected to total 7.1 million carats. The decrease in carats from the original plan is primarily due to deferring the processing and recovery of lower value carats from the re-processed rejects in favor of processing underground ore containing higher valued carats.
“Although the underground mine is still tuning its operating procedures, it has already reached and exceeded its planned underground production rate," Gannicott said.
Retail sales increased 14% to $95.6 million. The total number of units sold increased by 8%. Operating profit for the luxury brand segment increased 265% to $5.3 million.
“Our luxury brand business has demonstrated strong growth in its bridal jewelry sales, with the higher margins and broader base that this implies.
Consolidated profit for the third quarter was $ 3.4 million, compared to a $4.7 million loss in the third quarter of the previous year.
The company warned that continued economic uncertainty in Europe, the softening in consumer demand in China and budget issues in the U.S. "are likely to translate into slower growth in the near term, impacting the holiday season."
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