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ANALYSTS’ VIEW: U.S. IN 2012 LOOKS GOOD FOR DIAMONDS AND LUXURY February 08, 2012 (0 comments)
U.S. Seen As Bright Spot for Diamond Sales in 2012
Antwerp, Belgium—International diamond dealers are viewing the United States as a global bright spot for diamond sales in 2012, according to this report from Jewellery Outlook.com.
Dealers at the Antwerp Diamond Trade Fair, held January 29-31, said demand for polished diamonds has softened in the Eurozone—especially Italy—but U.S. demand is expected to rise following a positive holiday season.
The Jewellery Outlook report correlates with what Martin Rapaport told Centurion attendees at his presentation during the 2012 show last week. He told the Centurion audience that even though diamond prices fell in the second half of 2011 following robust increases in the first part of the year, diamonds overall still beat the S&P 500. For one-carat polished diamonds, prices as a whole rose 19% last year, compared to a median of 12.9% for the S&P 500 (S&P figure source: Wikipedia).
JO takes a slightly more optimistic view of Indian and Chinese demand for 2012 than Rapaport offered. According to JO, Indian and Chinese demand is expected to grow this year, though a clearer picture of those markets will emerge after the Hong Kong show set for later this month. Rapaport characterized the Chinese market as having “indigestion” and the Indian market facing tough credit—but he said both these situations are temporary and that American buyers should take advantage of the current window of opportunity.
Read the Jewellery Outlook report here, and read a summary of Rap’s Centurion presentation here.
2011 Luxury Retail Earnings Point to Continued Growth in 2012
New York, NY—Luxury retailers came out ahead at the end of 2011, suggesting the high end should continue to flourish in 2012, according to this article in Luxury Daily.
As of the Feb.3 report, luxury conglomerates and department stores have so far reported positive earnings, with most seeing double-digit growth in 2011.
Luxury conglomerate LVMH—which acquired Italian jeweler Bvlgari and increased its shares in French independent luxury goods maker Hermes last year—posted a 16% year-over-year increase in 2011. Saks Fifth Avenue saw its sales increase 7.8%, while Nordstrom posted a 7.2% increase.
Luxury companies should see strong growth not only from American shoppers but also consumers in the BRIC countries, says the article—but with a caveat that if the Euro implodes, everything could change.