Luxury jeweler and mining firm Harry Winston Diamond Corp. said Thursday it swung to a loss in the fourth quarter as its retail sales sank 20.8 percent for the period. Weighed down by noncash goodwill impairment related to retail operations totaling $93.8 million, or $1.53 a share, the Toronto-based firm recorded a net loss of $73 million, or $1.19 a diluted share, for the quarter ended Jan. 31. For the same quarter last year, the company had a profit of $90.4 million, or $1.54 a share. Net sales fell 37.1 percent to $118.4 million from $188.2 million last year while retail sales dropped to $67.3 million from $85 million. “Credit is the vascular system of the diamond industry,” said chairman and chief executive officer Robert Gannicott. “Its rapid decline last October shocked the diamond supply chain to a sudden standstill that persisted into this year.” The firm’s response, he noted, has been to reduce capital spending and operating costs “without jeopardizing the future of our production and sales platforms. “We now see some tentative recovery in the diamond market, albeit from a reduced base compared to six months ago,” he said. Last month, in a move that allowed the firm to pay down its mining segment debt, Kinross said it would invest $150 million for a direct stake in Harry Winston and an indirect interest in its minority holdings in the Diavik diamond mine.For the year, net income slid 34.1 percent to $70.1 million, or $1.15 a share, from $106.4 million, or $1.81 a share, last year. Revenue slid 10.3 percent to $609.2 million from $679.3 million, as net sales in the retail segment grew 5.8 percent to $281 million from $265.5 million. Excluding the effect of inventories on hand prior to the acquisition of the retail operation, gross margin in the retail segment declined to 49.4 percent of sales in 2008 from 50.3 percent in the prior year, reflecting a reduction in higher-margin sales in Japan, among other factors.Strong sales in the Middle East, Russia and the rest of Asia helped offset weakness in Japan.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim