Hublot Auction for Young Victims of the Catastrophe in Japan

In support of the Kids Earth Fund in Japan, the Swiss luxury watch brand Hublot began an online auction for its Manchester United King Power Red Devil engraved 000/500 timepiece.

Auction registration is now active on the Hublot website.

All funds from the sale of this rare timepiece made for the Manchester United English soccer team (one of the most popular and successful teams in any sport in the world) will go to the Kids Earth Fund directly benefiting the children suffering from the catastrophe in Japan.

All potential bidders must register on the Hublot website by June 22 at 2 p.m. GMT. The live auction will begin on June 23 at 2 p.m. GMT. The highest bid will win the watch.

And if I may say the 48 mm timepiece is quite a beauty. The hour markers of the sapphire dial are made from grass off the “sacred” turf of Manchester United's Old Trafford stadium. The date window is at 4 o'clock and the Manchester United Red Devil logo at 3 o'clock.

The bezel and case is made of black ceramic and it has an adjustable black rubber strap. The movement is the HUB 4245 skeleton chronograph.

“When you are sitting halfway around the world watching events like this unfold on a television screen, you cannot imagine the suffering, but you can try and help,” said Jean-Claude Biver, Hublot CEO and board member. “It is impossible for us to stop events like this happening but we owe it to our friends in Japan to help where ever and in whatever way that we can. That is why we cannot simply stop now. We must continue to help and send a very clear message to the people suffering from the fall out of the tsunami. We are here and we will not give up on you.”

Hublot Opens First Boutique in Japan

From left: Emmanuel Prat, president of Hublot Japan and LVMH Japan, Ricardo Guadalupe, Hublot managing director, Sumo wrestler Sho Hakuho, Jean-Claude Biver, Hublot CEO, and Harumi Torii, founder of a non-profit organization Kids Earth Fund at the June 2 opening of Hublot boutique in Tokyo. Biver is holding the King Power Red Devil that will be auctioned off to support children suffering from the recent Tohoku earthquake.

Hublot celebrated the opening of its flagship boutique on Namiki Street in Tokyo’s Ginza shopping district with a special unveiling of the FIFA Winner’s Trophy for 2014 FIFA World Cup Brazil and efforts to help children affected by the Japanese earthquake and tsunami. The event was attended by local celebrities and top Hublot officials. It is the Swiss luxury watch brand’s first boutique in Japan.

The boutique, designed by New York architect Peter Marino, carries the same concept as the Hublot boutiques in Place Vendôme, Paris (opened in December 2010) and Madison Avenue, New York (opened in February 2011). Marino introduced materials such as bronze, natural buckskin and ebony to convey a warm yet tranquil atmosphere. The Ginza boutique is the only location in Japan to offer the Hublot Vendome Collection.
 
Guests for the celebration included Sumo wrestler Sho Hakuho, soccer goalkeeper Seigo Narazaki and Harumi Torii, founder of a non-profit organization Kids Earth Fund. Hublot CEO Jean-Claude Biver, attended the event with Ricardo Guadalupe, Hublot managing director, and Emmanuel Prat, president of Hublot Japan and LVMH Japan.

Through a strong relationship with FIFA as the tournament’s Official Watchmaker and Official Timekeeper, Hublot was able to bring the FIFA Winner’s Trophy for 2014 FIFA World Cup Brazil to the event. It was the first public release of the trophy in Japan.

At a charity gala dinner to support the Kids Earth Fund, Hublot announced the donation of 10,000 sets of Swiss Caran d’Ache colored pencils for children affected by the tsunami. They are used by children in drawing workshops to help them express themselves.

As a special feature of the event, Hublot announced that the King Power Red Devil – limited number “000 of 500” timepieces will be presented for an online auction to raise funds for children in despair, beginning June 23. Registration will begin Friday (June 10) through the Hublot website, http://www.hublot.com.

Just after the chaos caused by Tohoku Earthquake on March 11, Hublot launched “Commitment for Japan, You and Hublot for Japan” campaign on its website to raise funds via Red Cross Society for support. The company soon became involved with the Kids Earth Fund, which works to help children worldwide who suffered through disasters.

Seiko Officials Address the Crisis in Japan

Seiko officials during press conference at Baselworld.

BASEL, Switzerland - Seiko Holdings Corp. officials said Thursday that one of its factories has been closed and that production has been significantly reduced due to the earthquake and tsunami in Japan.

“Some of the production has been slowed and a factory has been stopped because of a lack of electricity and gasoline, said Shinji Hattori, chief executive officer of the watch unit, during a press conference at Baselworld, the world’s largest watch and jewelry tradeshow.

The company was introducing a number of new products to celebrate its 130-year anniversary. Afterward, company officials responded briefly to reporters’ questions about the ongoing crisis.

Hattori, the grandson of the company’s founder, said that the closed facility should reopen in about a week. He did say that production will be reduced, although he didn’t speculate by how much or for how long. The company’s production facilities did not sustain any damages because they located are away from the devastated area and all of the company’s employees are safe and accounted for.

"You do not need to worry about it," he said.

More on the new products to come.

Tiffany Q4 Sales up 12%, Full-Year Sales up 31%

Tiffany & Co. said Monday fourth quarter worldwide net sales increased 12 percent to $1.1 billion due to growth in all geographic regions. Net earnings from continuing operations for the period rose 31 percent to $181.2 million. For the full year, net sales rose 14 percent to $3.1 billion and net earnings from continuing operations increased 39 percent to $368.4 million. Management also reduced its outlook for the first quarter of 2011 because of the crisis in Japan, where nearly a quarter of its stores are located.

“These strong fourth quarter sales, which were better than the holiday results we had previously reported, were the culmination of an excellent year of strong earnings growth for Tiffany,” said Michael J. Kowalski, Tiffany chairman and CEO. “Our broad-based success reflected healthy comparable store sales growth and successful new store openings in the Americas, Asia-Pacific and Europe, and highly successful new product introductions including our extraordinary yellow diamond collection.”

Net sales highlights by segment for the fourth-quarter and year-end period ended January 31:

* In the Americas region, which includes the U.S., Canada and Latin/South America, sales in the fourth quarter increased 10 percent to $577.1 million and in the full year rose 12 percent to $1.575 billion (representing 51 percent of worldwide sales). On a constant-exchange-rate basis, sales increased 10 percent in the quarter and 11 percent in the full year and comparable store sales increased 8 percent and 8 percent (comparable Americas' branch store sales increased 9 percent and 8 percent and sales in the New York flagship store rose 2 percent and 6 percent). Combined Internet and catalog sales in the Americas increased 8 percent in both the quarter and full year.

* In Asia-Pacific, sales increased 25 percent to $188.3 million in the fourth quarter and 29 percent in the full year to $549.2 million (representing 18 percent of worldwide sales). On a constant-exchange-rate basis, sales rose 21 percent in the fourth quarter, due to strong growth in most countries, and rose 23 percent in the full year; on that basis, comparable store sales rose 16 percent and 14 percent.

* In Japan, sales increased 11 percent to $182.6 million in the fourth quarter and rose 7 percent in the full year to $546.5 million (representing 18 percent of worldwide sales). On a constant-exchange-rate basis, sales increased 2 percent in the quarter and declined 1 percent in the full year; on that basis, comparable retail store sales rose 1 percent and declined 4 percent.

* In Europe, sales increased 14 percent to $137.9 million in the fourth quarter and rose 18 percent in the full year to $360.8 million (representing 12 percent of worldwide sales). On a constant-exchange-rate basis, sales rose 21 percent in the quarter, due to strong growth in the U.K. and most of continental Europe, and increased 23 percent in the full year; on that basis, comparable store sales rose 16 percent and 18 percent.

* The luxury jeweler opened nine branded stores in the fourth quarter, and opened 15 in the full year including five stores in the Americas (Baltimore, Houston, Jacksonville, Los Angeles and Santa Monica), two in Europe (Barcelona and London), seven stores in Asia-Pacific (four in China: Beijing, Shanghai (2) and Kunming; and one each in Seoul, Singapore and Taipei) and one in Japan. The company also closed two locations in Japan. The Company operated 233 stores as of January 31 (96 in the Americas, 56 in Japan, 52 in Asia-Pacific and 29 in Europe).

* Other sales declined 30 percent to $15.3 million in the fourth quarter and increased 2 percent to $54.2 million in the year (2 percent of worldwide sales).  Declines in wholesale sales of rough diamonds were partly offset in the quarter and entirely offset in the year by increased wholesale sales of finished goods to independent distributors within emerging markets.

Gross margin (gross profit as a percentage of net sales) rose to 60.9 percent in the fourth quarter from 58.7 percent in the prior year, with the increase primarily reflecting the recapture of higher product costs through retail price increases, as well as manufacturing efficiencies and sales leverage on fixed costs, the company said. Gross margin in the full year rose to 59.1 percent from 56.5 percent in the prior year due to similar factors.

Kowalski said that the company plans to open 21 stores across the Americas, Europe and Asia-Pacific in 2011 and will introduce new products and expand marketing communications efforts.

Japan Crises
Kowalski made the following statement about Japan and how it may affect sales and earnings in 2011:

“We are saddened by the tragic events in Japan. Our thoughts are with our more than 700 Tiffany colleagues and with all the people of Japan. Tiffany stores located in the Kanto and Tohoku regions, which generate somewhat more than half of sales in Japan, were closed or operating on reduced hours after the earthquake and tsunami, with physical damage limited to a few stores. Most stores have re-opened over the past weekend. Our stores in the southwestern Kansai region have remained open.

In preparing our financial expectations for 2011, we have assumed some continued periodic store closings or limited store hours in Japan through the end of the first quarter, resulting in worldwide sales growth of 11 percent in the first quarter, with total Japan sales declining 15 percent. This leads us to now expect that earnings in the first quarter will be reduced by approximately $0.05 per diluted share from our initial expectation of $0.62 per diluted share to a new expectation of approximately $0.57 per diluted share (versus the prior year of $0.48). We cannot provide meaningful forecasts about sales in Japan beyond the first quarter and, therefore, have not adjusted our sales or earnings plan for the remaining quarters of 2011.”

Outlook for 2011
Tiffany said it expects worldwide net sales growth of 12 percent – 14 percent for the full year of 2011 (ending Jan. 31, 2012), adding that it was on track to exceed that expectation in the first quarter prior to March 11, when the crises in Japan begun. This figure is based on the following assumptions:

* A low-double-digit percentage increase in the Americas;

* A 20 percent increase in Asia-Pacific;

* A mid-single-digit percentage sales decline in Japan;

* Sales increasing more than 20 percent in Europe; and

* Other sales are expected to increase more than 30 percent.

Net earnings are expected to increase 14 percent to 18 percent for 2011.

Japanese Pearl Industry Update During Disaster

Crown quality Japanese Akoya pearls shown by Imperial-Deltah pearl company during AGTA GemFair.

Obviously, the ongoing life and death situation from the tri-level tragedy in Japan are dominating the concerns of the Japanese people right now so there isn’t a lot to report regarding the country’s vitally important pearl industry. However, some news has trickled out and so far it seems that the pearl industry and more importantly those who work in the industry are largely unscathed.

First, Mikimoto, the largest and most famous pearl company in Japan, reports on its website that it has “confirmed the safety of all Mikimoto employees in Japan. Mikimoto stores, buildings, factories and facilities, including our pearl farm, have not sustained major damage.”

Meanwhile, Terry Shepherd, president of The Pearl Outlet, Woodland, Wash., gave a rundown on the situation on the Pearl-Guide message board, and again the news is largely as good as can be, considering the circumstances. The post includes the following note:

Cultivation areas: no major damages in initial reports

*Shima region: minor damage to rafts by tsunami
*Ehime: mostly OK
*Nagasaki & Kumamoto: mostly OK

As Mikimoto noted, Google has set up a crisis response website for this disaster at http://www.google.com/crisisresponse/japanquake2011.html.

Lady Gaga Designs Bracelet to Benefit Japanese Relief Efforts, Updated

Photo credit: Lady Gaga Official Store website.

Pop icon Lady Gaga has created a prayer bracelet to benefit the victims of the Japanese earthquake and tsunami. The simple white bracelet has the words “We Pray for Japan” in red letters in English and Japanese. It is available for $5 on her official store website. However, Gaga encourages people to spend extra for the bracelet. All proceeds will go toward Japan relief efforts, according to the website.

“Little Monsters, show your support for Japan with this ‘We Pray For Japan’ wristband!,” the website reads. “Choose your price to add an additional donation with your wristband. All proceeds go directly to Japan relief efforts.”

The bracelet can be purchased now for pre-order and will ship on or around March 25, the website reads.

The death toll from the 8.9-magnitude earthquake and subsequent tsunami is expected to rise to the tens of thousands, according to official Japanese sources. Hundreds of thousands of Japanese residents have lost their homes and other belongings. The deaths and damages affect more than a quarter of Japan's 47 prefectures (counties). In addition, nuclear power plants in the region are in a precarious situation.

Update 4:48 p.m.: Lady Gaga tweeted: "Monsters: in just 48 hrs you've raised a quarter of a million dollars for Japan Relief."