Harry Winston - The Water High Jewelry collection

Harry Winston has introduced its latest Water High Jewelry collection during the Biennale des Antiquaires in Paris, a wealth of rare blue and green gemstones.

Harry Winston is renowned for the crystal clarity of its pieces, with only rare splashes of colour. In the Water collection, though, the 19 new pieces are set with sapphires and emeralds, as well as turquoise and Paraibas – and the legendary Winston diamonds are still present too.

Featuring fluid lines and pristine purity, this new collection brings high jewelry on a journey to the very heart of nature.

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U.S. sales up, profits shrink for Harry Winston

Third-quarter sales in the United States increased 44 percent for Harry Winston Diamond Corp., though fourth-quarter marketing costs and expenses involved in expanding in emerging markets put downward pressure on profits.

Total worldwide sales for the third quarter ended Oct. 31 were $119.7 million, down 15 percent from $140.9 million in the third quarter of last year.

Sales in the company’s watch and jewelry retail segment were up 4 percent year-over-year, from $80.2 million to $83.5 million. This included the 44 percent jump in the U.S. market to $32.5 million, a 14 percent increase in Asia and a 31 percent slide in sales in Europe, where several significant sales in the third quarter of last year were not repeated this year.

“The luxury jewelry and timepiece market experienced moderate growth during the third quarter as demand from emerging markets remained strong, offsetting the effects of economic uncertainty in Europe and the U.S.,” the company said. “With the trend of rapidly rising wealth and increased mobility of Asian clients, these customers represent a growing share of clientele in all sales regions.”

Mining segment sales fell 40 percent, from $60.7 million to $36.2 million. The achieved per-carat price for rough diamonds increased from $95 to $159, primarily the result the company holding back lower-quality goods because of competition from recently released stocks of similar-quality goods in Zimbabwe.

The company reported an operating loss of $2.0 million, as compared to an operating profit of $14.8 million in the third quarter of last year. Losses were heavier on the luxury brand segment side of the business, with Harry Winston noting that it was the result of “seasonal increased marketing expenditure leading into the holiday season and expenses related to the anticipated opening of new salons in China in early 2012.”

Based in Toronto, Harry Winston has stores worldwide, including in New York, Paris, London, Beijing, China, Tokyo, Hong Kong and Beverly Hills, Calif., and supplies rough diamonds to the global market via its 40 percent ownership in Canada’s Diavik Diamond Mine.

-National Jeweler

HARRY WINSTON DIAMOND CORP’S SHARE PRICE DROPS AGAIN

The share price of the Harry Winston Diamond Corporation dropped again Wednesday to $11.59, a decline of 4.9%, Financial News Network Online reports.

Last week, the diamond company’s share price gained 2.4%, rising to $11.87. In the past 52 weeks, Harry Winston Diamond share prices have ranged from $9.14 to $18.23.

On September 26, the Financial News Network reported that that company’s share price had dropped nearly 29% since September 7, which showed that the luxury brand’s sales were up 98% year-on-year at a total of $132.8 million, while its diamond production had increased 11% year-on-year.

Harry Winston’s rough diamond sales, however, were down from 0.78 million carats in Q2 2010 to 0.57 million carats for the quarter reported.

-The Israeli Diamond Industry

Diamond prices suggest chaos hasn’t ensued

It may seem like a bit of a stretch, but believe it or not, diamond mining is tied to Europe’s banking mess.

Although the euro zone isn’t known for these jewels, its banks are the dominant credit facilities underwriters to diamond polishers, which John Hughes at Desjardins Securities pointed out in a research note. If the banks were freaking out, those credit lines could get cut - quickly.

But they haven’t, and Harry Winston Diamond Corp. (HW-T11.29-0.54-4.56%) released a mid-quarter update this week to reassure investors that the industry is in decent shape. Overall, credit facilities have neither been reduced or increased.

On top of that, Harry Winston announced that its jewellery and watch sales were strong in August and September, and demand has been particularly strong in the U.S. and Japan. Yes, polished rough diamonds have seen their prices fall by about 10 per cent since the end of July, but this isn’t 2008 all over again.

If you recall, Harry Winston traded around $46 in July 2007 and fell all the way down to about $2.80 in March 2009. The stock is back up just north of $12, and year-to-date has actually seen a 6-per-cent increase.Just another sign that this crisis is different from 2008.

-Globe and Mail

Harry Winston Holds Back Rough Sales in 3Q

Harry Winston is expecting lower than forecast rough diamond sales in the current third quarter as it held-off from selling goods in the current unstable market conditions.

''Although we continue to make small sales of specific rough diamond assortments to specialist clients, we have elected not to make broader rough diamond sales into an unstable market that seeks bargains,'' the company's chief executive, Robert Gannicott, said. ''As a result, significant rough sales revenue from this period will be deferred into the fourth quarter, and possibly subsequent periods.''

He noted that the current time of the year is traditionally quiet in the rough market due to the Jewish and Indian holiday periods, but the company expects a return to normality in November as demand increases in the lead-up to the Christmas, Indian wedding and Chinese New Year seasons.

However, the company noted that European banks’ exposure to the current sovereign debt crisis was having an impact on growth in the diamond polishing sector.

''The credit facilities essential to the diamond polishing industry are largely underwritten by European banks that are currently under stress with European sovereign debt issues,'' Harry Winston explained. ''The facilities have not been withdrawn or reduced, but neither have they been increased against higher unit prices.''

As a result, the company noted that cutters are now selling polished and reducing rough purchases to increase liquidity even as jewelry retail consumption continues at levels higher than in 2010. Gannicott stressed that the current strain is not having a dramatic impact on consumer spending, as had the financial collapse of 2008.

Harry Winston reported that jewelry and watch sales at its retail segment have continued to increase in the current third fiscal quarter, with particularly strong sales in the U.S. and Japan, and with Chinese customers representing a growing share of its clientele in all regions.

-Rapaport