The announcement coincided with its full-year results, with growth driven by its jewelry brands.
De Beers Sees 2015 Sales Drop 34 Percent
The diamond miner and marketer’s sales totaled $4.7 billion in 2015, down from $7.1 billion in 2014.
London--Total revenue for De Beers fell by 34 percent last year, as decreased demand for diamond jewelry in the downstream market resulted in a drop in rough diamond sales at the top of the pipeline.
Parent company Anglo American reported Tuesday that the diamond miner and marketer’s sales totaled $4.7 billion in 2015, down from $7.1 billion in 2014. Driving the decline was a 36 percent year-over-year drop in rough diamond sales, partially offset by a 5 percent increase in the average price-per-carat for the diamonds it sold.
The 2015 average realized diamond price was $207 per carat, up from $198 a carat in 2014, which De Beers said “reflected a stronger product mix, despite an 8 percent lower average rough price index for the [year].”
De Beers’s rough price index declined by 15 percent between the fourth quarter 2014 and the fourth quarter 2015, as the company cut prices as the year wore on in response to a slowdown in demand worldwide and outcry from manufacturers, who found their margins squeezed.
As reported previously, De Beers also pulled back on production in 2015, mining 12 percent fewer carats than it did in 2014.
While rough diamond sales fell in 2015, De Beers said its diamond brand, Forevermark, recorded “double-digit sales growth” (the company did not provide exact figures) and is now available in 1,760 outlets worldwide, a 14 percent increase over 2015.
The company’s chain of jewelry stores, De Beers Diamond Jewellers, “maintained its focus on fast-growing markets” and has a total of 35 stores in 12 key markets. The stores see strong sales at the high end and among Chinese consumers worldwide.
In 2016, De Beers expects the United States to remain the main driver of growth in consumer demand for diamond jewelry.
Rough diamond demand will depend on consumer demand and the resultant levels of restocking required by retailers and, consequently, the midstream (manufacturers, cutters and polishers.)
While subject to trading conditions, 2016 diamond production is expected to be slightly lower or on par with 2015, at 26 to 28 million carats.
The Latest
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
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.
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.
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.