Harry Winston 2Q Net Income Falls, Revenue Down
NEW YORK (AP) â¿¿ Harry Winston Diamond Corp.'s fiscal second-quarter net income dropped 52 percent as the company said it held back some of its rough diamond inventory because it didn't want to sell them while prices are weak.
Harry Winston, which supplies rough diamonds through its minority ownership stake in the Diavik diamond mine, has struggled this year with volatile diamond prices and mixed demand for luxury items, due to global economic difficulties.
For the three months ended July 31, the Canadian company earned $4.8 million, or 6 cents per share. That's down from $10 million, or 12 cents per share, a year earlier.
Analysts predicted earnings of 14 cents per share, according to a FactSet survey.Revenue fell 21 percent to $176.9 million from $222.4 million as rough diamond sales declined 31 percent. Harry Winston sold about 0.43 million carats for an average price of $142 per carat during the quarter. This compares with a year earlier, when it sold approximately 0.57 million carats for an average price of $157 per carat. Sales for the luxury brand division, which sells diamond jewelry and high-end watches, fell 13 percent. The performance was hurt by lower sales in Europe and Asia, excluding Japan. Sales in America and Japan rose. The company said Thursday that it expects wealth creation in emerging markets and increased tourism to continue to drive increased demand for luxury jewelry and watches. It anticipates consumer loyalty for luxury products to remain strong over the long term. Shares of Harry Winston added 59 cents, or 4.8 percent, to $12.83 in midday trading as the broader markets rallied. The stock has traded in a 52-week range of $9.14 to $15.92.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV