Harry Winston Diamond Corporation announced its first quarter Fiscal 2013 results today for the quarter ending 30 April 2012.
Consolidated sales increased 34 percent to $192.5 million for the first quarter compared to $143.9 million for the comparable quarter of the prior year. Operating profit was $18.7 million compared to $4.7 million in the comparable quarter of last year.
"We have improved sales, operating margins and profitability in all sectors of our business compared to the equivalent quarter of the prior year,” said Bob Gannicott, chairman and chief executive officer.
“The Diavik mine continues its transition to underground mining while jewelry and timepiece sales demonstrate our success in broadening the reach of the brand beyond reliance on a small, ultra high end market."
In the mining segment rough diamond sales for the quarter rose 43 percent to $89.0 million, versus $62.0 million in the comparable quarter of last year. The luxury brand segment recorded sales of $103.5 million, an increase of 26 percent from sales of $81.9 million in the comparable quarter of the prior year.
The company expects that global demand for luxury jewelry and watch products will continue to increase, but the sovereign debt crisis in Europe and the slowdown in the growth of China's economy may have an impact in the near term.
The company remains confident that the introduction of its new watch and jewelry products, supported by a strong advertising campaign, will contribute to sales growth.
Continued expansion of the distribution network in prime locations around the world should allow the company to benefit from the increasing mobility of high-end luxury consumers.
Harry Winston supplies rough diamonds to the global market from its 40 percent ownership interest in the Diavik Diamond Mine. The company's luxury brand segment is a premier diamond jeweler and luxury timepiece retailer with salons in key locations, including New York, Paris, London, Beijing, Shanghai, Hong Kong, Singapore, Tokyo and Beverly Hills.
A second, directly operated salon in London, UK, is expected to be opened by the middle of the fiscal year. A new licensed salon was opened in Moscow, Russia in May 2012, and an additional licensed salon is expected to be opened during fiscal 2013, in Kuwait.
