Sponsored by the Las Vegas Antique Jewelry & Watch Show
De Beers first-half sales drop 21 percent
The underlying issue for the diamond miner and marketer is weak consumer demand for diamond jewelry, which has persisted so far in 2015.
London--De Beers sales in the first half of the year fell 21 percent as consumer demand for diamonds continues to be sluggish, parent company Anglo American reported Friday.
Total sales in the first six months of the year totaled $3.0 billion, compared with $3.8 billion in the first half of 2014. De Beers’ underlying EBIT (earnings before interest and taxes) was down 25 percent.
The underlying issue for the diamond miner and marketer is weak consumer demand for diamond jewelry worldwide, with the slowdown in demand recorded in the fourth quarter 2014 continuing into the first half of this year. Russian company Alrosa reported the same in when it released its first-half financials earlier this week.
De Beers noted weaker-than-expected first quarter diamond sales in the United States specifically, which it blamed on the severe weather. The harsh winter also was one of the reasons the National Retail Federation cited in lowering its retail sales growth forecast for 2015.
Because retailers are selling fewer diamonds, they are purchasing less stock, which means players in the midstream, who also are grappling with liquidity and financing issues, are decreasing their rough purchases from De Beers.
Rough diamond sales were down 21 percent in the first half of the year to $2.7 billion. Though polished prices are down, De Beers reported that its average realized diamond prices increased 7 percent to $206 per carat, compared to $192 per carat in the first half of 2014.
As announced previously, first half production at De Beers’ mines fell by 3 percent. The company is decreasing output slightly due to the drop in demand for rough diamonds.
Looking ahead, De Beers said it expects global diamond jewelry demand to be “stable” in 2015.
Rough diamond demand is expected to remain low for the rest of the year, though exactly how low will depend on how much retailers restock in the second half of the year in preparation for the holiday season.
The Latest
The Patek Philippe expert will serve as personal curator for the brand-focused company.
The 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
NDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
LVMH said the company performed well despite an uncertain geopolitical and economic environment.
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
B&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
It’s ultra-feminine and filled with gold, pearls, and soft pastels.
Emily Highet Morgan and Emily Bennett have joined the agency’s team.
Its updated book for mountings is also now available.
Joyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
He is remembered by loved ones for his loyalty, integrity, and kindness.
Hosted by Freeman’s | Hindman, the sale will take place May 7-8.
The auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
From cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
The charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Ahead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Members can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.
He is remembered for his charisma, passion, integrity, kindness, and wit.
The retailer also appointed two new board members, avoiding a proxy fight from a potential buyer.
The bridal collection consists of 35 engagement rings and seven wedding bands.
The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
The family-owned jeweler has a new education section on its website dedicated to the history of diamond cutting.