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Toronto--Third-quarter sales in the United States increased 44 percent for Harry Winston Diamond Corp., though fourth-quarter marketing costs and expenses involved in expanding in emerging markets put downward pressure on profits.

Total worldwide sales for the third quarter ended Oct. 31 were $119.7 million, down 15 percent from $140.9 million in the third quarter of last year.

Sales in the company’s watch and jewelry retail segment were up 4 percent year-over-year, from $80.2 million to $83.5 million. This included the 44 percent jump in the U.S. market to $32.5 million, a 14 percent increase in Asia and a 31 percent slide in sales in Europe, where several significant sales in the third quarter of last year were not repeated this year.

“The luxury jewelry and timepiece market experienced moderate growth during the third quarter as demand from emerging markets remained strong, offsetting the effects of economic uncertainty in Europe and the U.S.,” the company said. “With the trend of rapidly rising wealth and increased mobility of Asian clients, these customers represent a growing share of clientele in all sales regions.”

Mining segment sales fell 40 percent, from $60.7 million to $36.2 million. The achieved per-carat price for rough diamonds increased from $95 to $159, primarily the result the company holding back lower-quality goods because of competition from recently released stocks of similar-quality goods in Zimbabwe.

The company reported an operating loss of $2.0 million, as compared to an operating profit of $14.8 million in the third quarter of last year. Losses were heavier on the luxury brand segment side of the business, with Harry Winston noting that it was the result of “seasonal increased marketing expenditure leading into the holiday season and expenses related to the anticipated opening of new salons in China in early 2012.”

Based in Toronto, Harry Winston has stores worldwide, including in New York, Paris, London, Beijing, China, Tokyo, Hong Kong and Beverly Hills, Calif., and supplies rough diamonds to the global market via its 40 percent ownership in Canada’s Diavik Diamond Mine.