Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
Alrosa’s Diamond Sales Falter in February
After a strong start to the year, uncertainty surrounding the continuing spread of COVID-19 weighed on the miner’s sales.
Moscow—Alrosa’s diamond sales declined in February amid the continuing spread of COVID-19, and the miner is cutting its supply forecast for 2020.
The Moscow-based diamond miner reported Wednesday that sales of rough and polished diamonds totaled $346.4 million, essentially unchanged from $345.6 million a year ago but down 14 percent from January, a month in which it saw a double-digit increase in sales as cutters restocked.
“In February, the uncertainty with the spread of COVID-19 started to weigh negatively on the demand and customers’ activity, the factor that will be impacting demand in the coming months,” said Evgeny Agureev, Alrosa’s deputy CEO. “However, we continue to pursue ‘price-over-volume’ strategy to keep prices stable rather than increasing sales volumes.”
In an analyst briefing held Tuesday in conjunction with the release of its full-year 2019 results, Alrosa said COVID-19 poses a setback to an industry that’s just emerging from a difficult year.
“The diamond industry came out of 2018/2019 crisis year healthier, with balanced stocks, disciplined supply management across the chain, and a more financially sustainable mid-stream segment,” the company remarked.
“However, in the short-term certain headwinds … such as the COVID-19 outbreak could decelerate demand recovery, which started to materialize in the second half of 2019.”
Alrosa finished 2019 with a 21 percent drop in revenue to 238 billion rubles ($3.3 billion) and net profit falling 31 percent to 63 billion rubles ($885.6 million).
The diamond miner saw rough diamond sales sink 26 percent on the year as it allowed clients to buy less in the face of faltering demand, excess supply in the pipeline and manufacturers’ continuing difficulties in securing financing.
Miners like De Beers and Alrosa are also grappling with the increasing amount of diamond jewelry sold online, as e-commerce sites do not have to hold the same level of inventory as brick-and-mortar stores with showcases to fill.
The diamond market picked up in August as consumer activity recovered in key sales markets in the second half of the year, particularly in the United States, Chief Financial Officer Alexey Philippovskiy said.
Alrosa finished the year with fourth quarter revenues up 5 percent year-over-year.
The company said in its analyst briefing that its mid- to long-term outlook for the diamond industry remains optimistic, due to a growing middle class in countries like China, India, Vietnam and Indonesia, and shrinking supply.
In November, Alrosa announced it was cutting its production
It expects to mine 34 million carats, down from 39 million carats last year and the 38 million carats it originally forecast.
The Latest
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Despite the rising prices, consumers continue to seek out the precious metal.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
The ad aims to position platinum jewelry as ideal for everyday wear.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.
Sponsored by the Las Vegas Antique Jewelry and Watch Show
Tobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
Stars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
The branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
The six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
The highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.