Toronto based luxury diamond retailer Harry Winston expects higher sales and profits as demands rise for luxury items. As the global economy rebounds, Winston forecasts diamonds demand to climb in Asia, based off of 169 per cent holiday sale increase.
This comes after the announcement of a larger than expected quarterly profit Tuesday. Profits of $9.9 million in the fourth quarter may be what led to this prediction of an increase in sales. That additional fourth quarter boost increases Winston’s 2010 profits to 215.4 million.
Additionally, this year, Harry Winston plans to focus on its watch business because of the higher profitability it acquires compared to other Winston products. Part of this plan is to introduce both more affordable and more expensive timepieces.
“Going forward, we expect increased demand for luxury jewellery and timepieces to continue, supported by the strong wealth trend we've seen in various markets around the world,” Frederic De Narp, head of Harry Winston's retail segment, to The Globe and Mail. “While there will be variations in our quarterly results depending upon product needs and investment, we continue to expect a positive overall trend and remain on track with our goals.”
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On Winston’s mining, the company plans to open more pits in the upcoming years while also starting new exploration drilling projects to provide a higher grade diamonds.
“Rough diamond pricing is now comfortably ahead of its pre-recession highs and polished diamond prices are making significant gains as competition for supply replaces the polisher's need to sell,” said Robert Gannicott, the Winston’s chairman and CEO.
With all this new focus and higher demand, Harry Winston expects an estimated 35-40 per cent growth in retail sales for 2011.
This comes after the announcement of a larger than expected quarterly profit Tuesday. Profits of $9.9 million in the fourth quarter may be what led to this prediction of an increase in sales. That additional fourth quarter boost increases Winston’s 2010 profits to 215.4 million.
Additionally, this year, Harry Winston plans to focus on its watch business because of the higher profitability it acquires compared to other Winston products. Part of this plan is to introduce both more affordable and more expensive timepieces.
“Going forward, we expect increased demand for luxury jewellery and timepieces to continue, supported by the strong wealth trend we've seen in various markets around the world,” Frederic De Narp, head of Harry Winston's retail segment, to The Globe and Mail. “While there will be variations in our quarterly results depending upon product needs and investment, we continue to expect a positive overall trend and remain on track with our goals.”
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On Winston’s mining, the company plans to open more pits in the upcoming years while also starting new exploration drilling projects to provide a higher grade diamonds.
“Rough diamond pricing is now comfortably ahead of its pre-recession highs and polished diamond prices are making significant gains as competition for supply replaces the polisher's need to sell,” said Robert Gannicott, the Winston’s chairman and CEO.
With all this new focus and higher demand, Harry Winston expects an estimated 35-40 per cent growth in retail sales for 2011.
