Harry Winston Q3 Sales Up 88%

Harry Winston, said that third quarter consolidated sales increased 88 percent year-over-year to $140.9 million, led by a two-fold increase in rough diamond sales from its Canadian mine and a 50 percent increase in its luxury jewelry retail operation.

Consolidated earnings totaled $13.7 million for the period, ended October 31, compared to a loss of $4.9 million for the third quarter of 2009. Consolidated net income for the third quarter was $3.9 million.

Rough diamond sales for the quarter rose 192 percent year-over-year to $60.7 million. The Toronto based company supplies rough diamonds to the global market from its 40 percent interest in the Diavik Diamond Mine, located in Canada’s Northwest Territories. Mining giant Rio Tinto owns the remaining 60-percent share of the mine. The increase in sales resulted primarily from a 182 percent increase in volume of carats sold.

Meanwhile, retail sales increased 48 percent for the quarter to $80.2 million. The company’s retail division, Harry Winston Inc., is a premier diamond jeweler and luxury timepiece retailer with salons in key locations including New York, Paris, London, Beijing, Tokyo and Beverly Hills.

Robert Gannicott, Harry Winston chairman and CEO said the insatiable appetite for hard luxury goods in China and other emerging countries is the main reason for Harry Winston’s strong third-quarter performance.

“Diamond demand in the Far East continues to propel rough diamond prices as the Diavik mine transitions to underground production,” Gannicott said. “Marketing efforts and store openings are successfully burnishing the Harry Winston brand to capture the branded luxury appetites of the emerging wealth of the newly developing parts of the world.”

Reena Ahluwalia Designs Historic Indian Diamond Jewelry Collection

Courageous Spirit necklace

A friend of Jewelry News Network, Toronto-based jewelry designer Reena Ahluwalia, has created a jewelry collection that uses diamonds mined and manufactured in India. The first time in more than a century this has happened.

The diamonds came from Rio Tinto’s Bunder Project in Madhya Pradesh province, in the center of the country. Ahluwalia was born in Madhya Pradesh.

“What an amazing honor to give back to my province and country of birth,” Ahluwalia said.

Courageous Spirit earrings

Titled Courageous Spirit, the jewelry features a statement necklace and a set of complementary earrings. The collection incorporates a total of 25.34 carats of polished Bunder diamonds and 2.8 carats of rough Bunder diamonds, including a 5.04 carat round brilliant cut white diamond and a 5.02 carat round brilliant cut cognac diamond.

The diamond-encrusted disc symbolizes the natural abundance of the Bunder diamond deposit.

“Inspired by a compass, the disc rotates on a central axis, while a marker points to the true center of the Bunder story—the earthly origins of the diamonds and the pioneering spirit of the people who are so integral to Bunder's development,” Rio Tinto said in a statement. “The latitude and longitude coordinates of the Bunder diamond deposit are inscribed on the back of the disc.”

The rough diamonds were cut and polished by master craftsmen in Indian cutting and polishing factories, while the design was brought to life by Indian jewelry manufacturer Uni-Design Jewellery Private Ltd. of Mumbai.

The jewelry was unveiled Friday at an event in the province with Chief Minister of Madhya Pradesh, Shri Shivraj Singh Chouhan, in attendance.

“The Government of Madhya Pradesh has supported us from the very beginning in our quest to develop a new benchmark for mine development in India,” said Nik Senapati, managing director of Rio Tinto India. “I am delighted that seven years after our initial discovery, we can showcase these exquisite pieces of jewelry that provide a window into the enormous potential of the gems contained in the Bunder deposit.”

He added, “The Courageous Spirit jewelry collection holds a very special place in Indian diamond history as it has been at least a century since India has mined, designed and manufactured its own diamond jewelry.”

The Courageous Spirit collection is not available for sale, but will be showcased at a number of events throughout the second half of 2012.

The Bunder project was discovered in 2004 by Rio Tinto who entered into a “State Support Agreement” with Madhya Pradesh in 2010 to develop the project. Diamonds from the mine likely to come into commercial production in 2016, Rio Tinto said.

Please join me on the Jewelry News Network Facebook Page and on Twitter  @JewelryNewsNet.

Harry Winston May Purchase Second Canadian Diamond Mine

Ekati diamond mine. Photo credit: Jason Pineau, through Wikipedia

Harry Winston is in talks to purchase an important asset of BHP Billiton’s diamond business, according to published reports.

The Toronto-based company, which describes itself as a diamond enterprise with premium assets in the mining and retail segments of the diamond industry, has secured bank financing for a possible deal to buy the Ekati diamond mine in Northwest Territories of Canada, according to the Financial Times. However, the deal, which was to be completed by mid year is going slower than expected and could even break down.

Harry Winston, best known as a luxury jewelry and watch retailer, already owns a 40 percent share in the Diavik diamond mine in the same area with Rio Tinto, which owns a 60 percent stake.

Both BHP Billiton and Rio Tinto announced in November 2011 that they are looking to get out of the diamond business to focus on larger, more-profitable assets from their vast mining businesses.

It’s a complicated matter, according to the report, because if Rio Tinto agreed to sell Diavik to Harry Winston, it would make it more difficult for the mining giant to sell the rest of its diamond assets.

Please join me on the Jewelry News Network Facebook Page and on Twitter  @JewelryNewsNet

Gold, Diamonds and Crystals Glitter, Sparkle, and Shine at Las Vegas Jewelry Week

The World Gold Council's LoveGold exhibit at Couture.

Not everything was for sale at the jewelry shows in Las Vegas this past week although I suppose someone could have purchased the 27-pound gold bar valued at more than $500,000 from the LoveGold Exhibit at the Couture jewelry show.

Gold jewelry from Couture Show jewelry exhibitors.

Up on a stage above the tradeshow exhibitors at Wynn Las Vegas, the World Gold Council’s exhibition included art creations, curated gold jewelry used at red carpet events and selected gold pieces from the vendors at the tradeshow. LoveGold is the fashion jewelry initiative of the WGC, the marketing development organization of the gold industry.

One of the gold fashion displays at the LoveGold exhibit.

Many of the pieces were from the catwalk at Cannes where they were part of a special fashion show that was curated by Carine Roitfeld, the former editor-in-chief of Vogue Paris, to benefit amfAR, the foundation for AIDS research.

“We want to showcase the best that gold can be regardless of origin or price point,” said Sally Morrison of the World Gold Council. “The exhibition at Couture was a way of introducing the beginning of this activity to the brands and press at the show.”

A display at the "Diamonds with a Story" Rio Tinto Diamonds exhibition that highlights diamond origins.

As previously noted, Rio Tinto Diamonds presented an exhibition at the JCK Luxury and JCK Las Vegas tradeshows titled “Diamonds with a Story.” It featured jewelry created for the US market by eight North American designers based on the following four topics: “Origin,” “Cutting Impact,” “Mixed Medium” and “Color My World.” The designers created their works using Rio Tinto's colored diamonds from its Argyle mine in Australia and white diamonds from its Diavik mine in Northwestern Canada.

Varieties of Rio Tinto diamonds.

The exhibit is part of a marketing program by the mining company for the jewelry trade based on its own consumer research. The jewelry collections based on the four stories identify consumers' desire for the following attributes:

• Identifying the place of origin of the diamond they buy;
• Knowing that their diamond purchase is having a positive impact;
• Differentiating designs and concepts; and
• Access to natural colored diamonds

“We are excited by how well the 'Diamonds with a Story' platform is resonating," said Rebecca Foerster, manager of Rio Tinto Diamonds US Representative Office. “This appetite for innovation is good news for miners, manufacturers, retailers and ultimately the consumer.”

Elaborate and colorful jewelry design by David Mandel, part of the Swarovski Elements exhibit at JCL Las Vegas.

Swarovski Elements, the premium brand division of the world-renowned crystal company, Swarovski, provided a fashion-forward jewelry exhibition at JCK Las Vegas called “World Jewelry Facets,” featuring collaborations with designers and artists representing several mediums who created colorful designs using Swarovski crystal.

A necklace by Tim Hosier and Brian Thorson.

The creations ranged from elaborate, fanciful designs to more wearable pieces. Designers included Tim Hosier and Brian Thorson, known for their home accessories designs, to entertainment industry designer David Mandel.

Jewelry by American artists at the Swarovski Elements exhibit

There is also a charitable element with designs created by Senhoa, a non-profit organization and fashion brand that produces jewelry made by survivors of human trafficking. The Senhoa line on display was designed by Canadian model, Coco Rocha, and handcrafted by survivors of exploitation in Cambodia.

Jewelry by the non-profit organization and fashion brand, Senhoa, handcrafted by survivors of exploitation in Cambodia,

 
Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

Reena Ahluwalia’s Award-Winning Diamond Necklace to be Showcased in Oscars Celebrity Suite

Canoe diamond necklace

Toronto-based jewelry designer Reena Ahluwalia was recently honored as a winner of the Rio Tinto Diamonds Global Design Competition for her “Canoe” diamond necklace. It will be among winning designs that will be showcased at the annual Academy Awards 2012 with a chance to be selected and worn on the red carpet by Hollywood’s elite.

Set in 18K white gold, with 28.96 carats of Canadian diamonds, Ahluwalia said the necklace was inspired by a poetic image of the magical Canadian landscape and its pristine white winters. It captures a snapshot of a snow covered canoe in a frozen crystalline lake.

“Celebrating the magic and beauty of Canada, my home, is the inspiration for my design,” she said. “Canoe is a carrier of Canadian myths, a symbol very unique to Canada that represents voyage, harmony with nature, discovery and courage. It is one of the greatest gifts the First Nations people gave to all those who came after.”

Reena Ahluwalia with her trophy.

After receiving a record number of entries from around the globe, a panel of judges from the U.S. jewelry and fashion industries gathered in New York to select nine winners in four categories: Ahluwalia, received the Master Craftsman award in the Canadian Diamonds category.  

The necklace comes together with two diamond-studded links embracing the neck that represent the fluidity of lake. Irregular intersecting lines, studded with Ideal Square cut diamonds depict the chunks of floating ice. The necklace culminates into a canoe shaped element. “Canoe” has an angled faceted interior,

“I wanted the diamonds to reflect on the opposite facets for a dramatic shine and create an icy crystalline look,” Ahluwalia said.

Crossworks Manufacturing Ltd., a manufacturer of branded Canadian diamonds, collaborated with Ahluwalia, sponsored manufacturing and provided Canadian diamonds for the necklace.

Gubelin Group Returns as JNA Awards Partner

The 2013 JNA Award winners.

The Gubelin Group, known for its fine jewelry that merges Swiss goldsmith craftsmanship with precious gemstones, and its world-renowned scientific gemstone laboratory, has returned for the second year in a row as an “Honored Partner” of the JNA Awards 2014. 

The Swiss-based company joins “Headline Partners” Rio Tinto and Chow Tai Fook, and fellow Honored Partners Israel Diamond Institute, KARP Group and Shanghai Diamond Exchange for the event to be held September 16, during the September Hong Kong Jewellery & Gem Fair.

Organized by Jewellery News Asia, Asia’s leading jewelry trade publication, the annual JNA Awards honors innovators and leaders of the international jewelry industry in manufacturing, branding, retailing, best business practice, innovation, sustainability and outstanding contribution.

In 2013, the awards recognized 16 recipients across 16 categories at a ceremony and gala dinner attended by over 500 industry luminaries at the Grand Hyatt Hotel in Hong Kong. Industry pioneers Leung Sik Wah and Wallace Chan received the "Lifetime Achievement" and "Outstanding Contribution of the Year" awards, respectively, for their distinguished service and accomplishments.

“We are very pleased to welcome back Gubelin's firm support for the JNA Awards. Their deep commitment to top quality and professionalism not only brings lustre to this most anticipated event, it also strongly emphasizes the Awards' reputation as a platform for raising the standard and quality of the jewelry and gemstone industry,” said Letitia Chow, founder of JNA and director of Business Development - Jewellery Group at UBM Asia.

“For Gubelin, the awards marks one of the most important events of the year for the jewelry industry,” said Raphael Gubelin, CEO and Board Member of the Gubelin Group. “It's not only a place to meet friends and partners to strengthen relationships, but also a night where the industry's biggest movers celebrate. And that motivates companies and their employees to constantly evolve and excel.”

Headquartered in Lucerne, Switzerland, Gubelin is a family-owned business now led by sixth-generation members with operations covering jewelry manufacturing and retail. It has eight boutiques in key locations across Switzerland selling jewelry and watches, and one boutique each in Kuala Lumpur and Hong Kong focused on selling only jewelry pieces. Last year, Gubelin enhanced its presence in Hong Kong by inaugurating its VIP Salon in Gloucester Tower at The Landmark and opening the Gubelin Academy that offers courses aimed at trade professionals, private clients and connoisseurs of colored gemstones.

The group also operates its world-renowned Gubelin Gem Lab, one of the oldest and most respected institutions of its kind, widely trusted on by dealers, auction houses, royal families and collectors since the 1920s.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes website.