Tiffany "Losing Staff to New Sales Targets"

Tiffany & Co is reported to be losing staff after setting unachievable sales targets.

Employees at the flagship Fifth Avenue store – newly rebranded as The Landmark – have received lower commissions as a result and many have moved elsewhere, according to sources who spoke anonymously to Fashion Network.

The fashion news website says staff at The Landmark, which generates 10 per cent of all Tiffany revenue, were set a $60m sales target for December 2023, compared to $30m the previous year.

Before the LVMH acquisition of Tiffany, for $16bn in 2021, monthly targets were typically increased by 5 per cent or 10 per cent.

Employees at The Landmark reportedly sold $50m last December. A hefty increase on 2022, but not enough to meet the company’s target.

Tiffany has also been falling short of the $25m monthly targets set for Q1 of 2024, according to the Fashion Network report.

It said some employees claimed they’d been told three quarters of the store’s 350 staff had left in a year.

A Tiffany spokesperson said earning for its top 20 client advisors were up by as much as 75 per cent on the previous year.

Source: DCLA

Lucapa recovers 176 carat diamond at Lulo mine in Angola

Lucapa Diamond announced Monday the recovery of the fifth +100 carat diamond found this year, a 176 carat Type IIa gem diamond from the Lulo alluvial mine in Angola.

The 176 carat diamond is the 45th +100 carat stone to be recovered from Lulo and the eighth largest, since alluvial operations began in 2015, the company said.

In 2021, Lucapa announced a 35% increase in the resource carats at Lulo, and the mine’s in-situ resource now sits at 135,900 carats at a modelled average diamond value of $1,440/carat.

The continual recovery of these and other large, high value diamonds has been a major source of revenue for Lulo over the years – in December 2023 Lucapa fetched $17 million for four diamonds recovered from Lulo – as well as being a major informant to the kimberlite exploration program.

Lucapa continues to hunt for the source of these large gems via the kimberlite exploration program which is currently bulk sampling kimberlitesin close proximity to the mining blocks where the 176 carat diamond was recovered.

“The recovery of this 176 carat diamond is yet more confirmation of the massive potential of the kimberlite province where we are focussing our exploration efforts to find the source(s) of these magnificent gems. As can be seen from the image below, the diamond has not travelled far as it still displays sharp, angular edges,” Lucapa CEO Nick Selby said in a news release.

The firm has a 40% stake in Lulo, which hosts the world’s highest dollar-per-carat alluvial diamonds. The rest is held by Angola’s national diamond company (Endiama) and Rosas & Petalas, a private entity.

Source: DCLA

Lucapa concludes special tender worth $12m

Lucapa Diamond Company has sold six diamonds recovered from the Lulo mine, in Angola, in a special tender for $12.4-million.

The diamonds totalled 447 ct and consisted of five white Type IIa diamonds, as well as a pink diamond.

The average price per carat was about $27 700.

MD and CEO Nick Selby deems the tender result pleasing. “Our alluvial project, in Angola, continues to deliver fantastic diamonds that are always in demand through all market cycles and achieve very competitive values.”

Source: DCLA

Another Hefty Drop for India’s Diamond Exports

India’s exports of polished diamonds suffered another hefty drop in June, down 26 per cent year-on-year to $1.02bn.

Foreign sales in May were down by almost 15 per cent to $1.47bn, according to new figures from the GJEPC (Gem and Jewellery Export Promotion Council).

Polished diamond exports have fallen every month this year, down 20 per cent in January, 28 per cent in February, 27 per cent in March and 17 per cent in April.

Gross imports of rough diamonds for April to June dropped by 15 per cent by value to $3.39bn and 6 per cent by volume.

Overall exports of all gems and jewelry declined by 15 per cent in June to $1.9bn.

Source: DCLA

Huge Budget Boost for India’s Diamond Industry

India’s diamond industry welcomed a raft of measures announced in today’s budget (23 July) which will encourage direct diamond sales from foreign mining companies and reduce tax on key raw materials.

Finance Minister Nirmala (pictured) said safe harbor rates would be introduced, providing fixed and favorable tax rates for rough purchases in the country’s SNZs (Special Notified Zones).

Safe harbor streamlines the taxation process and eliminates unexpected liabilities for foreign suppliers.

Sitharaman also announced significant tax reductions on gold and silver to 6 per cent (from 15 per cent and 10 per cent) and on platinum to 6.4 per cent (from 12.5 per cent) and the exemption of diamond sales from a 2 per cent equalization levy aimed at promoting sustainability.

“India is a world leader in the diamond cutting and polishing industry, which employs a large number of skilled workers,” Sitharaman said in her Budget speech.

“To further promote the development of this sector, we would provide for safe harbor rates for foreign mining companies selling raw diamonds in the country.”

“I want to applaud and congratulate the Central Government for their three-point game changing decisions for the gems and jewellery industry,” said Vipul Shah, chairman of GJEPC (Gem and Jewellery Export Promotion Council).

“The reduction of customs duty on gold and silver, exclusion of diamond sector from 2 per cent equalisation level and simplifying taxation rules in Special Notified Zones (SNZ) for rough diamonds will provide a leadership position to the Indian gems and jewellery industry.”

Source: DCLA

De Beers Rough Production Down 15%

De Beers reported a 15 per cent drop in its global diamond production in Q2, as demand remained weak for yet another quarter.

The H1 figure (16.5m carats) is down 19 per cent on the same period in 2023.

The total number of carats recovered during Q2 2024 was 6.4m, down from 7.6m year-on-year. Botswana, which accounts for around two thirds all De Beers’ production, was worst hit, with output down 19 per cent.

De Beers blamed “intentional lower production from short-term changes in plant feed mix at Jwaneng to process existing surface stockpiles”.

Jwaneng, De Beers’ biggest deposit saw output drop 36 per cent during the quarter, from 2.5m carats to 1.9m.

Production in Namibia was down 8 per cent, Canada slipped 1 per cent and South Africa increased by 8 per cent.

In its Production Report for the Second Quarter of 2024, De Beers said guidance for the year remained unchanged at 26m-29m carats.

But parent company Anglo American has indicated that production for the year (originally given as 29m-32m carats) could well be further reduced to manage working capital and preserve cash in a weak market.

Source: DCLA

Grande is the New Face of Swarovski

US pop icon Ariana Grande is the new brand ambassador for Swarovski , the Austria-based crystal and jewelry company.

Grande, aged 31, a Grammy-winning singer, songwriter, and actress, will star in the company’s upcoming holiday campaign.

Swarovski, which reported increased sales of $1.99bn in 2023, says it chose Grande as a “powerful advocate for inclusion and empowerment”. It describes her a “true style icon”.

Grande said: “It’s an honor to represent a house that shares my passion for creativity, pushes the boundaries beyond the world of jewelry, and promotes values of unapologetic self-expression.”

Giovanna Engelbert, Swarovski’s global creative director, said: “Ariana is a brilliant artist whose creativity shines through her songwriting and vocal performances as well as her personal style. I look forward to engaging in inspiring creative dialogues together.”

Grande started her career in the Broadway musical 13 when she was just 15. She had just finished on stage in Manchester, England, in May 2017, when an Islamic extremist suicide bomber killed 22 fans as they were leaving the arena.

Source: DCLA