Sales slide at Tiffany & Co as tourists tighten their purses

Sales performed below expectations for Tiffany & Co during the first quarter of 2019.

For the three months ended April 30, worldwide net sales fell by 3% to $1bn compared to the previous year, and comparable sales declined by 5%. On a constant exchange rate basis, net sales were equal to the prior year and comparable sales declined 2%.

Net earnings came in at $125 million, 12% lower than the prior year’s $142 million.

These results reflect mixed performance across regions and product categories.

During the quarter engagement rings sales decline by 6%, while jewellery collections saw a 1% increase.

Totally net sales declined in the major markets, with Europe and the Americas both reported a 4% decline, with the latter being impacted by lower spending from foreign tourists. In Asia Pacific total net sales fell by 1%, something the brand attributes to the effect of foreign currency translation.

As a result of Q1, Tiffany has trimmed its earnings outlook, now expecting earnings in the 2019 financial year to increase by a low to mid single digit percentage, compared with its previous forecast for a mid single digit percentage increase.

Tiffany’s chief executive officer, Alessandro Bogliolo, reports: “Our first quarter results reflect significant foreign exchange headwinds and dramatically lower worldwide spending attributed to foreign tourists. That said, we were pleased that, at the core of our business, global sales attributed to local customers, led by sales in China, grew over last year’s very strong sales results.

“We believe this growth in sales to local customers reflects progress in executing our strategic priorities, including innovations across products, communications and the customer experience, and that Tiffany is positioned for improving trends in the second half of 2019.”

Tiffany opened two company operated stores in the first quarter, closed two stores and relocated two.

At April 30, 2019, the Company operated 321 stores (124 in the Americas, 89 in Asia-Pacific, 56 in Japan, 47 in Europe and five in the UAE), versus 314 stores a year ago (123 in the Americas, 87 in Asia Pacific, 54 in Japan, 46 in Europe and four in the UAE).

Source: DCLA

Sales slide at Tiffany & Co as tourists tighten their purses

Sales performed below expectations for Tiffany & Co during the first quarter of 2019.

For the three months ended April 30, worldwide net sales fell by 3% to $1bn compared to the previous year, and comparable sales declined by 5%. On a constant exchange rate basis, net sales were equal to the prior year and comparable sales declined 2%.

Net earnings came in at $125 million, 12% lower than the prior year’s $142 million.

These results reflect mixed performance across regions and product categories.

During the quarter engagement rings sales decline by 6%, while jewellery collections saw a 1% increase.

Totally net sales declined in the major markets, with Europe and the Americas both reported a 4% decline, with the latter being impacted by lower spending from foreign tourists. In Asia Pacific total net sales fell by 1%, something the brand attributes to the effect of foreign currency translation.

As a result of Q1, Tiffany has trimmed its earnings outlook, now expecting earnings in the 2019 financial year to increase by a low to mid single digit percentage, compared with its previous forecast for a mid single digit percentage increase.

Tiffany’s chief executive officer, Alessandro Bogliolo, reports: “Our first quarter results reflect significant foreign exchange headwinds and dramatically lower worldwide spending attributed to foreign tourists. That said, we were pleased that, at the core of our business, global sales attributed to local customers, led by sales in China, grew over last year’s very strong sales results.

“We believe this growth in sales to local customers reflects progress in executing our strategic priorities, including innovations across products, communications and the customer experience, and that Tiffany is positioned for improving trends in the second half of 2019.”

Tiffany opened two company operated stores in the first quarter, closed two stores and relocated two.

At April 30, 2019, the Company operated 321 stores (124 in the Americas, 89 in Asia-Pacific, 56 in Japan, 47 in Europe and five in the UAE), versus 314 stores a year ago (123 in the Americas, 87 in Asia Pacific, 54 in Japan, 46 in Europe and four in the UAE).

Source: DCLA

Alrosa to Sell Directly to Consumers

Alrosa is launching a source-of-origin program that will enable dealers and consumers to buy polished diamonds with detailed provenance information.

The Russian miner will create an “electronic passport” for each diamond on a new website, diamonds.alrosa.ru, presenting the stone’s physical characteristics, age, and place and date of extraction, as well as where and when it was cut. It will also name — and provide some information on — the artisan who polished the stone. The story will be viewable as an automated video.

The platform is initially aimed at the trade, but the company will open it up to the public in the fall of this year, it revealed last week during the JCK Las Vegas show.

“As part of the platform, there will be an option for end consumers to buy diamonds directly from Alrosa — for those individuals who want to buy a diamond with a provenance,” a spokesperson for the miner confirmed to Rapaport News Tuesday.

Proof of origin has gained importance for diamond miners, with De Beers launching a provenance program in April that enables consumers to view sustainability credentials for its mines at dtc.com. Alrosa explained its strategy during the JCK show, arguing that it was taking the issue much more seriously than many other market players.

“The traceability of a diamond is a pledge of confidence to anyone making such a purchase,” Alrosa added. Information on provenance, social responsibility and a stone’s non-conflict status “are all required by purchasers, especially younger generations,” the company noted. It’s currently trialing the system with 2,000 diamonds, and plans to increase that number soon.

Alrosa’s program will encompass diamonds from its own polished division, which had sales of approximately $95 million in 2018. The company is in negotiations to acquire Russian manufacturer Kristall, which would triple its polished output. The deal is expected to close this year, company representatives said.

Source: Diamonds.net

Alrosa to Sell Directly to Consumers

Alrosa is launching a source-of-origin program that will enable dealers and consumers to buy polished diamonds with detailed provenance information.

The Russian miner will create an “electronic passport” for each diamond on a new website, diamonds.alrosa.ru, presenting the stone’s physical characteristics, age, and place and date of extraction, as well as where and when it was cut. It will also name — and provide some information on — the artisan who polished the stone. The story will be viewable as an automated video.

The platform is initially aimed at the trade, but the company will open it up to the public in the fall of this year, it revealed last week during the JCK Las Vegas show.

“As part of the platform, there will be an option for end consumers to buy diamonds directly from Alrosa — for those individuals who want to buy a diamond with a provenance,” a spokesperson for the miner confirmed to Rapaport News Tuesday.

Proof of origin has gained importance for diamond miners, with De Beers launching a provenance program in April that enables consumers to view sustainability credentials for its mines at dtc.com. Alrosa explained its strategy during the JCK show, arguing that it was taking the issue much more seriously than many other market players.

“The traceability of a diamond is a pledge of confidence to anyone making such a purchase,” Alrosa added. Information on provenance, social responsibility and a stone’s non-conflict status “are all required by purchasers, especially younger generations,” the company noted. It’s currently trialing the system with 2,000 diamonds, and plans to increase that number soon.

Alrosa’s program will encompass diamonds from its own polished division, which had sales of approximately $95 million in 2018. The company is in negotiations to acquire Russian manufacturer Kristall, which would triple its polished output. The deal is expected to close this year, company representatives said.

Source: Diamonds.net

RapNet Members Say ‘No’ to Synthetics

The RapNet community has voted overwhelmingly against introducing services for the lab-grown-diamond sector.

Members voted by 79% to 21% against the trading platform listing synthetics on the site. They also rejected a lab-grown price list, with 74% voting “no.”

The poll took place on RapNet last week. The audience applauded when Martin Rapaport, Chairman of the Rapaport Group, revealed the results Sunday at the annual Rapaport Breakfast at JCK Las Vegas.

Following the results, RapNet will not provide a trading platform for synthetics, or introduce a price list for the product, Rapaport confirmed. “We believe the current prices for synthetic diamonds are artificial, as they are based on misleading disclosure,” he added.

Voters also heavily backed the view that synthetics producers must disclose post-growth treatments, and supported the establishment of an organization for the natural-diamond industry.

RapNet vote results:

Should RapNet list synthetic diamonds?
Yes: 1,607 (21%)
No: 5,934 (79%)

Should Rapaport publish a synthetic price list?
Yes: 1,885 (26%)
No: 5,232 (74%)

Should synthetic diamonds be required to disclose treatments?
Yes: 5,892 (88%)
No: 819 (12%)

Would you support establishment of a natural-diamond organization?
Yes: 5,528 (85%)
No: 1,104 (15%)

Source: Rapaport News

RapNet Members Say ‘No’ to Synthetics

The RapNet community has voted overwhelmingly against introducing services for the lab-grown-diamond sector.

Members voted by 79% to 21% against the trading platform listing synthetics on the site. They also rejected a lab-grown price list, with 74% voting “no.”

The poll took place on RapNet last week. The audience applauded when Martin Rapaport, Chairman of the Rapaport Group, revealed the results Sunday at the annual Rapaport Breakfast at JCK Las Vegas.

Following the results, RapNet will not provide a trading platform for synthetics, or introduce a price list for the product, Rapaport confirmed. “We believe the current prices for synthetic diamonds are artificial, as they are based on misleading disclosure,” he added.

Voters also heavily backed the view that synthetics producers must disclose post-growth treatments, and supported the establishment of an organization for the natural-diamond industry.

RapNet vote results:

Should RapNet list synthetic diamonds?
Yes: 1,607 (21%)
No: 5,934 (79%)

Should Rapaport publish a synthetic price list?
Yes: 1,885 (26%)
No: 5,232 (74%)

Should synthetic diamonds be required to disclose treatments?
Yes: 5,892 (88%)
No: 819 (12%)

Would you support establishment of a natural-diamond organization?
Yes: 5,528 (85%)
No: 1,104 (15%)

Source: Rapaport News

Lucapa diamonds sell for $14.5 million at auction

Lucapa Diamond Company has continued its successful run at auction after securing $US10 million ($14.5 million) for the sale of alluvial diamonds from its Lulo mine in Angola, central Africa.

The run-of-mine diamonds, which totalled 5573 carats in weight (around 11.15 kilograms), achieved an average price of $US1800 a carat.

Several more high-value Lulo diamonds — including a 130-carat type IIa diamond and 45-carat pink — are still being held as inventory by partner Sociedade Mineira Do Lulo (SML), which is operated and 40 per cent-owned by Lucapa.

SML plans to expand Lulo’s plant throughput by 50 per cent to around 450,000 bulk cubic metres by 2020. The company upgraded Lulo’s JORC resource in January by 90 per cent to 80,400 in-situ carats at an average price of $US1420 a carat.

It is Western Australia-based Lucapa’s fourth diamond tender in 2019, following two auctions in February and a third in May.

It is also the second tender of the year from the company’s Lulo mine. The first auction, which took place via electronic tender in Luanda, Angola in February, remains the company’s largest sale of the year so far. It secured $US16.7 million for the sale of seven large diamonds at an average price of $US33,530 a carat.

The other two auctions related to the sale of diamonds from Lucapa’s other African mine, the Mothae kimberlite joint venture project between Lucapa (70 per cent) and the Government of the Kingdom of Lesotho in southern Africa (30 per cent).

These sales took place in Antwerp, Belgium in February and May, and raised $5.3 million and $US3.5 million respectively.

Lucapa launched commercial production of Mothae in January this year. The company is also progressing two early-stage exploration projects: Orapa Area F in Botswana and Brooking in Western Australia.

Source: DCLA