Diamond Miner-retailer Harry Winston Post 2Q Loss

NEW YORK (AP) — Canadian diamond miner and seller Harry Winston Diamond Corp. reported a loss for the second quarter because of unfavorable foreign exchange rates, a decline in rough diamond prices and weak demand for luxury jewelry.

Harry Winston said after the market closed Thursday that it lost $24.5 million, or 32 cents per share, in the three months ended July 31 compared with earnings of $49.9 million, or 81 cents per share, a year ago.

During the second quarter, the Canadian dollar strengthened against the U.S. dollar, and results included a foreign exchange loss on future income tax liabilities of $25.3 million, or 33 cents per share. A year earlier, the company recorded a foreign exchange gain of $5.3 million, or 9 cents per share.

Revenue declined 49.1 percent to $94.8 million from $186.1 million because of a 36 percent decline in rough diamond prices and fewer volume in carats sold in the quarter.

Analysts polled by Thomson Reuters expected a loss of 2 cents per share. These estimates typically exclude one-time items.

Selling, general and administrative expenses declined to $28.2 million from $34 million because of lower advertising and savings from staff reductions, among other factors.