Harry Winston Diamond Corporation’s share price has dropped nearly 29% since it released its last earnings report on September 7, the Financial News Network reports.
When the report was released, its share price was $15.01. The most recently updated share price appearing on the corporation’s website was $10.67, a loss of 28.9%.
According to FNN, the past 52 weeks have seen Harry Winston’s share prices range from a low of $10.36 to a high of $18.23.
The figures published earlier this month stated that the diamond company’s luxury brand sales were up 98% year-on-year at a total of $132.8 million, while its diamond production had increased 11% year-on-year. Rough diamond sales, however, were down from 0.78 million carats in Q2 2010 to 0.57 million carats for the quarter reported.
Monday, September 26, 2011
Hong Kong Show Closes Amid Price Uncertainty, Economic Concerns
Diamond and jewelry suppliers appeared satisfied at the close of the Hong Kong Jewellery & Gem Fair on Sunday even as visitor traffic slowed and buying remained cautious during the final days of the event.
''The show fell at a time when the global economy has been weak and that was reflected in the show,'' said David Wiener, vice president of Harry Kotlar & Company, a Los Angeles-based jewelry wholesaler who attended the fair for the first time. ''For us the show has been important to initiate relationships in the region because we believe these contacts will eventually lead to sales.''
Wiener noted that Chinese retail buyers visiting the show appeared enthusiastic to learn about larger, high-quality stones, signaling growing interest to develop the big stone market in the region.
Still, Flora Wan, vice president of marketing at ENZO, a Chinese retail chain, noted that the local market for diamonds was focused on stones in the size range between 0.70 carats and 1.10 carats, while buyers maintained a focus on better clarities, VVS-VS, and color ranges of G to I.
Most loose diamond vendors agreed, but also noted that buyers in the region are starting to show more willingness to compromise on quality and are moving towards SI clarity stones for more affordable price points. Most reported some weakness in demand for the VVS goods. ''The Far East is increasingly looking for lesser quality goods,'' said one New York-based diamond manufacturer, who requested anonymity. He noted that there was strong demand for 1-carat, VS-SI1 stones at the show, with a strong emphasis on triple Ex make goods.
Wan noted that consumer interest in ENZO’s niche color gemstones was increasing rapidly in China as was general demand for white diamonds. ENZO recently launched a new wedding diamond collection, which, Wan said, was aimed at promoting diamonds for wedding occasions in the country.
Few disputed the importance of penetrating the Far East market as U.S. and European demand continues to lag while economic concerns grow. Rahul Dholakia, a marketing and finance director at Shree Ramkrishna Export, a Surat, India-based diamond manufacturer, noted that footfalls at the company’s booth in the diamond pavilion were good and reinforced its confidence that growth will be driven by Far East and Asian markets.
Hanan Rapaport, the Far East sales manager for Ramat Gan-based Avlas Diamonds, a specialist in better-quality fancy shape diamonds, reported that the show beat his expectations because of the niche market in which the company is operating. ''I am not surprised because we are dealing with expensive fancies so we didn’t have to reduce prices,'' he said. ''There are still not enough nice fancies in the market because it’s difficult to find the suitable rough and people have preferred to cut rounds in the past year.''
Most loose diamond exhibitors noted that there was some softening of prices as buyers were prepared to hold out on making large volume purchases. Many came to the show with low expectations and were therefore not disappointed by the low sales and traffic relative to past September shows.
One Mumbai-based diamond jewelry manufacturer noted that buyers appeared willing to wait out the current cautious economic environment. ''Retailers are not in a cash crunch but wholesalers are, so retailers are prepared to sit on low inventories for now and take advantage of the situation,'' he said, while requesting anonymity. ''But everyone is a bit vulnerable with prices and we are waiting to see the extent of the correction and economic conditions.''
Organizers reported that visitor traffic reached 48,188 through the duration of the show, excluding the final day on Sunday. Local Hong Kong visitors accounted for about 30 percent of the total, while 23 percent were from Mainland China and 7 percent from India. The peak days of the show were Wednesday and Thursday and visitor traffic quieted over the weekend despite the show being open to the public on those days.
''The show fell at a time when the global economy has been weak and that was reflected in the show,'' said David Wiener, vice president of Harry Kotlar & Company, a Los Angeles-based jewelry wholesaler who attended the fair for the first time. ''For us the show has been important to initiate relationships in the region because we believe these contacts will eventually lead to sales.''
Wiener noted that Chinese retail buyers visiting the show appeared enthusiastic to learn about larger, high-quality stones, signaling growing interest to develop the big stone market in the region.
Still, Flora Wan, vice president of marketing at ENZO, a Chinese retail chain, noted that the local market for diamonds was focused on stones in the size range between 0.70 carats and 1.10 carats, while buyers maintained a focus on better clarities, VVS-VS, and color ranges of G to I.
Most loose diamond vendors agreed, but also noted that buyers in the region are starting to show more willingness to compromise on quality and are moving towards SI clarity stones for more affordable price points. Most reported some weakness in demand for the VVS goods. ''The Far East is increasingly looking for lesser quality goods,'' said one New York-based diamond manufacturer, who requested anonymity. He noted that there was strong demand for 1-carat, VS-SI1 stones at the show, with a strong emphasis on triple Ex make goods.
Wan noted that consumer interest in ENZO’s niche color gemstones was increasing rapidly in China as was general demand for white diamonds. ENZO recently launched a new wedding diamond collection, which, Wan said, was aimed at promoting diamonds for wedding occasions in the country.
Few disputed the importance of penetrating the Far East market as U.S. and European demand continues to lag while economic concerns grow. Rahul Dholakia, a marketing and finance director at Shree Ramkrishna Export, a Surat, India-based diamond manufacturer, noted that footfalls at the company’s booth in the diamond pavilion were good and reinforced its confidence that growth will be driven by Far East and Asian markets.
Hanan Rapaport, the Far East sales manager for Ramat Gan-based Avlas Diamonds, a specialist in better-quality fancy shape diamonds, reported that the show beat his expectations because of the niche market in which the company is operating. ''I am not surprised because we are dealing with expensive fancies so we didn’t have to reduce prices,'' he said. ''There are still not enough nice fancies in the market because it’s difficult to find the suitable rough and people have preferred to cut rounds in the past year.''
Most loose diamond exhibitors noted that there was some softening of prices as buyers were prepared to hold out on making large volume purchases. Many came to the show with low expectations and were therefore not disappointed by the low sales and traffic relative to past September shows.
One Mumbai-based diamond jewelry manufacturer noted that buyers appeared willing to wait out the current cautious economic environment. ''Retailers are not in a cash crunch but wholesalers are, so retailers are prepared to sit on low inventories for now and take advantage of the situation,'' he said, while requesting anonymity. ''But everyone is a bit vulnerable with prices and we are waiting to see the extent of the correction and economic conditions.''
Organizers reported that visitor traffic reached 48,188 through the duration of the show, excluding the final day on Sunday. Local Hong Kong visitors accounted for about 30 percent of the total, while 23 percent were from Mainland China and 7 percent from India. The peak days of the show were Wednesday and Thursday and visitor traffic quieted over the weekend despite the show being open to the public on those days.
Friday, September 23, 2011
ShopperTrak Predicts Slight Increase in Christmas Retail Sales
According to ShopperTrak, a provider of retail foot traffic data, U.S. retail sales for the Christmas season 2011 could increase by as much as 3 percent year on year. However, ShopperTrak expects fewer shoppers will be visiting retailers in person with a projected foot traffic decrease of 2.2 percent. Just for comparison, the group concluded that 2010 Christmas season retail sales rose by 4.1 percent. (Learn more: Is your ecommerce channel ready? and Is your retail store ready?)
''The persistently high unemployment and fuel rates along with consumers’ conservative purchasing attitudes will affect spending this holiday season more than in recent years,'' said ShopperTrak's co-founder Bill Martin. ''Every shopper in a store will be more valuable than last year, and retail stores should be ready to convert their holiday shoppers into sales.''
While ShopperTrak doesn't break out sales projections by detailed category, the group expects a 2.7 percent year-on-year increase in sales for apparel and accessories, which would include the jewelry segment. U.S. consumers are increasingly sensitive to value with lower-end apparel and accessories specialty stores coming under greater pressure to reduce prices in order to compete with discount chains. Higher-end stores, however, may have an advantage this season as shoppers seek quality purchases offering perceived value and longevity of use.
Value-conscious consumers are also increasingly using the Internet to stretch their dollars by shopping at online outlets with potential for deep discounts or researching premium priced, large purchases. As a result, when consumers do walk into stores, they have a purchasing strategy and are less likely to browse. This will account for significant foot-traffic losses this holiday season, according to ShopperTrak.
''As the economy continues to struggle, tracking daily foot traffic and understanding store traffic patterns is more important than ever,'' added Martin. ''Retailers who pay close attention to their browser to buyer conversion rates and adjust their product offerings, store layouts and staff scheduling to improve those rates will be the most successful this year.''
''The persistently high unemployment and fuel rates along with consumers’ conservative purchasing attitudes will affect spending this holiday season more than in recent years,'' said ShopperTrak's co-founder Bill Martin. ''Every shopper in a store will be more valuable than last year, and retail stores should be ready to convert their holiday shoppers into sales.''
While ShopperTrak doesn't break out sales projections by detailed category, the group expects a 2.7 percent year-on-year increase in sales for apparel and accessories, which would include the jewelry segment. U.S. consumers are increasingly sensitive to value with lower-end apparel and accessories specialty stores coming under greater pressure to reduce prices in order to compete with discount chains. Higher-end stores, however, may have an advantage this season as shoppers seek quality purchases offering perceived value and longevity of use.
Value-conscious consumers are also increasingly using the Internet to stretch their dollars by shopping at online outlets with potential for deep discounts or researching premium priced, large purchases. As a result, when consumers do walk into stores, they have a purchasing strategy and are less likely to browse. This will account for significant foot-traffic losses this holiday season, according to ShopperTrak.
''As the economy continues to struggle, tracking daily foot traffic and understanding store traffic patterns is more important than ever,'' added Martin. ''Retailers who pay close attention to their browser to buyer conversion rates and adjust their product offerings, store layouts and staff scheduling to improve those rates will be the most successful this year.''
Diamond Dealers Club President Resigns
Moshe Mosbacher has resigned from the presidency of the Diamond Dealers Club, amid various financial allegations. Vice President Basant Johari was named acting president.
The Tuesday evening resignation followed a report by Chaim Even-Zohar in the Diamond Intelligence Briefs that leveled a number of allegations against Mosbacher, including receiving a $100,000 loan from the DDC.
Mosbacher rejected the allegations in his resignation announcement:
"I hereby tender my resignation as President of the DDC effective today September 20, 2011.
"In light of certain allegations that have been leveled against me which I maintain are totally false and without merit, I feel that it would serve the DDC properly if I stepped aside. As the accountant and the Executive Board look into the allegations. This way the investigation can be conducted without any possible hindrance. I insist that the books and workings of the DDC over the last ten years should continue as part of my resignation. I am confident that when all facts and figures are known, it will show that there was absolutely no wrongdoing on my part."
The Tuesday evening resignation followed a report by Chaim Even-Zohar in the Diamond Intelligence Briefs that leveled a number of allegations against Mosbacher, including receiving a $100,000 loan from the DDC.
Mosbacher rejected the allegations in his resignation announcement:
"I hereby tender my resignation as President of the DDC effective today September 20, 2011.
"In light of certain allegations that have been leveled against me which I maintain are totally false and without merit, I feel that it would serve the DDC properly if I stepped aside. As the accountant and the Executive Board look into the allegations. This way the investigation can be conducted without any possible hindrance. I insist that the books and workings of the DDC over the last ten years should continue as part of my resignation. I am confident that when all facts and figures are known, it will show that there was absolutely no wrongdoing on my part."
Tuesday, September 20, 2011
Buyers Test Prices on First Day of Hong Kong Show
The Hong Kong Jewellery & Gem Fair opened Monday with just ''average'' traffic, but a lot of inquiries as dealers were searching for market price levels. Diamond suppliers reported that buyers were looking for goods while testing the waters with low offers on the first day. Sellers were holding firm on their prices with the hope that these will be accepted later in the week.
Organizers reported that participation in the event rose 8 percent year on year with 3,454 exhibitors from 46 countries displaying goods, of which about 430 are located in the diamond pavilion.
''The scale of the September fair continues to reach new heights,'' said Celine Lau, director of jewelry fairs at UBM Asia Ltd. ''These record breaking figures have further strengthened the fair’s position as the world’s number one jewelry event.''
The fair is split into two venues with the AsiaWorld-Expo (AWE), featuring the diamond pavilion, running from September 19 to 23, and the Hong Kong Convention and Exhibition Centre (HKCEC) running from September 21 to 25.
Dealers are hoping that Far East demand at the show will enable a period of stability after prices have declined in the past two months as economic sentiment in the U.S. and Europe has stammered.
''Amid worries about economic uncertainty in the West, China, with its huge population, growing middle-classes and rising consumer spending, are becoming major driving forces of global jewelry demand,'' Lau said. ''Exhibitors would like to leverage on the advantages of the September show for expanding their business to these emerging markets.''
Organizers reported that participation in the event rose 8 percent year on year with 3,454 exhibitors from 46 countries displaying goods, of which about 430 are located in the diamond pavilion.
''The scale of the September fair continues to reach new heights,'' said Celine Lau, director of jewelry fairs at UBM Asia Ltd. ''These record breaking figures have further strengthened the fair’s position as the world’s number one jewelry event.''
The fair is split into two venues with the AsiaWorld-Expo (AWE), featuring the diamond pavilion, running from September 19 to 23, and the Hong Kong Convention and Exhibition Centre (HKCEC) running from September 21 to 25.
Dealers are hoping that Far East demand at the show will enable a period of stability after prices have declined in the past two months as economic sentiment in the U.S. and Europe has stammered.
''Amid worries about economic uncertainty in the West, China, with its huge population, growing middle-classes and rising consumer spending, are becoming major driving forces of global jewelry demand,'' Lau said. ''Exhibitors would like to leverage on the advantages of the September show for expanding their business to these emerging markets.''
Over 100 Israeli Diamond Companies Showing in Hong Kong
The Hong Kong September Jewellery and Gem Fair 2011 opened Monday, with notable presence by the Israeli Diamond Industry.
The Israeli pavilion is the largest at the show in terms of the number of exhibitors. Special effort has been put into the Israel Diamond Institute’s two 1,500-square-meter booths, in which 105 diamond companies are showing, to attract buyers to the Israeli booths.
The IDI also sponsored the official opening event, at which IDI Chairman Moti Ganz presented Diamond Trading Company CEO Varda Shine with the League of Honor and presented the new president of the Israel Diamond Exchange, Yair Sahar.
Sahar congratulated Shine in the name of the Israeli Diamond Industry for her work on behalf of Israel’s diamond sector and gave her an IDI brooch designed by Yehuda Kassif, curator of the Harry Oppenheimer Diamond Museum. The brooch tells the story of a diamond from the moment it is mined to the moment it is polished.
The Israeli pavilion is the largest at the show in terms of the number of exhibitors. Special effort has been put into the Israel Diamond Institute’s two 1,500-square-meter booths, in which 105 diamond companies are showing, to attract buyers to the Israeli booths.
The IDI also sponsored the official opening event, at which IDI Chairman Moti Ganz presented Diamond Trading Company CEO Varda Shine with the League of Honor and presented the new president of the Israel Diamond Exchange, Yair Sahar.
Sahar congratulated Shine in the name of the Israeli Diamond Industry for her work on behalf of Israel’s diamond sector and gave her an IDI brooch designed by Yehuda Kassif, curator of the Harry Oppenheimer Diamond Museum. The brooch tells the story of a diamond from the moment it is mined to the moment it is polished.
Titan Aims For Annual Sales of $3B in Two Years
Titan Industries Ltd., a lifestyle and jewelry company from Tata Group, expects to achieve annual turnover of $3 billion by fiscal year 2014-2015 as it looks to expand.
''Plans are for aggressive growth in our existing business. We are exploring the footwear segment, but nothing is concrete yet,'' said Bhaskar Bhat, the managing director of Titan Industries, which operates nearly 700 retail stores.
The company sells its jewelry under Tanishq, Goldplus and Zoya brands, while its eyewear brands include Titan, Eye+ and Dash. It sells watches under Titan, Xylys, Sonata, Fastrack brand and also has a precision engineering division.
Titan is planning to open one or two more stores of its mass market jewelry retail brand, Goldplus, in this fiscal year that ends on March 31, 2012, Bhat said on the sidelines of a conference, after Tata Sons' chairman Ratan Tata unveiled the world’s first "gold jewelry" car that was crafted by Goldplus. The company currently has 30 Goldplus retail stores.
This past week, Muthoot Finance Ltd., a non-banking financing firm, and Goldplus entered into a partnership to finance and sell jewelry in the southern Indian state of Andhra Pradesh.
''We have covered pretty much of Tamil Nadu and Andhra Pradesh is the focus now,'' Bhat explained. He added that Titan is planning to spend about $50 million (INR 2.38 billion) on expansion in fiscal 2012 and the expenditure could be around the same level next year. Bhat said that during the festive season, which runs from September to December, the company expects sales growth of about 25 percent to 30 percent.
''I think sales should be normal during Diwali season. High gold prices always affect volume but consumers will come back as soon as festive season starts,'' he added.
Due to higher prices people limit their purchases to the amount of money that they have, but they still buy gold in preference to many other goods as it is seen as an investment, Bhat explained. ''So there will be less volume but consumers would still buy gold. It is the most preferred category.''
Bhat stated the company expects fiscal 2012 sales to be around $2 billion (INR 90 billion), up from $1.39 billion (INR 65.90 billion) one year earlier.
Titan reported sales rose 62.5 percent year on year to $463.65 million (INR 20.48 billion) during its first-fiscal-quarter of 2012 that ended on June 30, 2011. The company attributed strong growth to improved sales across all its divisions and retail chains, mainly the jewelry business.
''Plans are for aggressive growth in our existing business. We are exploring the footwear segment, but nothing is concrete yet,'' said Bhaskar Bhat, the managing director of Titan Industries, which operates nearly 700 retail stores.
The company sells its jewelry under Tanishq, Goldplus and Zoya brands, while its eyewear brands include Titan, Eye+ and Dash. It sells watches under Titan, Xylys, Sonata, Fastrack brand and also has a precision engineering division.
Titan is planning to open one or two more stores of its mass market jewelry retail brand, Goldplus, in this fiscal year that ends on March 31, 2012, Bhat said on the sidelines of a conference, after Tata Sons' chairman Ratan Tata unveiled the world’s first "gold jewelry" car that was crafted by Goldplus. The company currently has 30 Goldplus retail stores.
This past week, Muthoot Finance Ltd., a non-banking financing firm, and Goldplus entered into a partnership to finance and sell jewelry in the southern Indian state of Andhra Pradesh.
''We have covered pretty much of Tamil Nadu and Andhra Pradesh is the focus now,'' Bhat explained. He added that Titan is planning to spend about $50 million (INR 2.38 billion) on expansion in fiscal 2012 and the expenditure could be around the same level next year. Bhat said that during the festive season, which runs from September to December, the company expects sales growth of about 25 percent to 30 percent.
''I think sales should be normal during Diwali season. High gold prices always affect volume but consumers will come back as soon as festive season starts,'' he added.
Due to higher prices people limit their purchases to the amount of money that they have, but they still buy gold in preference to many other goods as it is seen as an investment, Bhat explained. ''So there will be less volume but consumers would still buy gold. It is the most preferred category.''
Bhat stated the company expects fiscal 2012 sales to be around $2 billion (INR 90 billion), up from $1.39 billion (INR 65.90 billion) one year earlier.
Titan reported sales rose 62.5 percent year on year to $463.65 million (INR 20.48 billion) during its first-fiscal-quarter of 2012 that ended on June 30, 2011. The company attributed strong growth to improved sales across all its divisions and retail chains, mainly the jewelry business.
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