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INDUSTRY NEWS: GRAFF SET FOR IPO; JC PENNEY, TOURNEAU JOIN FORCES; PALLADIUM DESIGN CONTEST KICKOFF May 31, 2012 (0 comments)
Graff IPO Set For June 7
Hong Kong—Laurence Graff, head of the eponymous diamond house, acknowledged that stock market conditions aren’t the greatest at present, but views his upcoming initial public offering as an “opportunity to get Graff shares at a bargain.”
According to this report in Women’s Wear Daily, the diamantaire, known for his collection of large and rare stones, is planning to forge ahead with his HK $1 billion IPO on the stock exchange here. The company reportedly has set its initial sights on offering shares between $25 and $37 Hong Kong dollars (between US $3.22 and $4.76 per share at press time exchange rates).
The company is pegging its growth plans on Asia, especially China. Its 2011 net profit rose 10%, said the article, and first-quarter 2012 sales are strong, with all regions reporting growth. Executives said they plan to improve gross margins by further penetrating the high-net-worth market with new lines of jewelry priced under $1 million, and selling more watches. At present, says the article, watches account for only 3% of sales, but carry a 70% margin. Watch sales at other luxury [jewelry] firms, meanwhile, account for about 15% of sales.
The offering originally was set for June 7; however, after The Centurion Newsletter went to press we learned it has been postponed due to adverse market conditions.
Tourneau, JCPenney To Join Forces
Plano, TX—JCPenney is hoping to lure a higher level of watch buyer to its stores. According to a report in JCK, the mid-market retailer will be launching “Watch Gear by Tourneau” shop-in-shops. Its goal, similar to its partnership with cosmetic giant Sephora, is to bring in brands that would not typically be a JCPenney offering. The watch shop concept will have elements of Tourneau’s flagship store in New York, and will carry price points higher than Penney’s typically does, but according to CEO Ron Johnson, it “won’t be as high 57th Street.”
Separately, the retailer recently brought its jewelry department—one that’s been a tough sell, according to Women’s Wear Daily—in line with its “fair and square” everyday pricing strategy.
In The Pink: Diamond and Ruby Fetch Record Prices At Auction
Hong Kong--Christie’s May 29 sale of Hong Kong Magnificent Jewels netted U.S. $80,258,468, and featured the 12.2-ct Martian Pink diamond, sold by Harry Winston in 1976. It fetched more than U.S. $17 million. A ring containing a 6.04-ct. perfect Burmese ruby also set a world record, fetching U.S. $551,000 per carat.
Palladium Alliance International Announces Design Contest
Billings, MT—Palladium Alliance International (PAI) has announced what it calls the largest design contest in the jewelry industry to date. The competition, exclusively for designs crafted in palladium, will offer up to 100 designers and retailers a chance to share in up to $1 million worth of prizes.
The competition is open to all U.S. designers and retailers. All entries must feature 95% palladium alloy as the only precious metal, and if gemstones are included, only genuine gems.
A panel of industry experts will score the entries based on how well each design highlights the key qualities of palladium: its natural whiteness, durability, and light weight.
“PAI is the world’s first organization dedicated to promoting palladium as a luxurious and distinctive jewelry metal,” said PAI chairman John Stark, adding that a design competition for the metal is a natural fit for the organization.
Up to 100 winners will receive a refund check for the cost of the palladium alloy used in their piece, up to five ounces. They also will receive a professional photo of their winning design; and inclusion in a major stylist showroom throughout 2013 for possible use in celebrity dressings at major events such as the Golden Globes, Emmy Awards and Oscars.
The three top designs, with the winners’ names, will be featured in PAI’s print ads in top fashion magazines like InStyle, W, Elle, Marie Claire and Cosmopolitan. In addition, the grand prize winner will receive a contract to create a line of palladium jewelry, with PAI supplying up to 30 ounces of 950 palladium alloy for manufacturing it.
The total value of available prizes is up to $1 million in cash and promotional consideration.
Designers, and retailers who do custom in-house design, are encouraged to review the complete contest rules at luxurypalladium.com/DesignContest. To compete, they must fill out an official entry form, available on the PAI website, and submit a high-resolution digital photo, a detailed drawing, or a CAD rendering of the design they wish to enter. Each participant may enter up to ten designs.
Entrants who are selected as one of the finalists (up to 100), will then be asked to complete and submit the finished piece for final review of its overall design, craftsmanship, practicality, wearability, and marketability. Entrants who pass the final review will be declared an official winner.
The competition opened May 29. Photos, renderings, or CAD drawings are due Friday, September 21, 2012 for the first round of judging.
Up to 100 finalists will be notified on October 5, 2012 to begin work on their finished pieces, which will be due for final evaluation no later than Monday, December 17, 2012.
PAI will announce the official winners, up to 100, on Monday, January 14, 2013, along with the winners of the third, second and grand prize.
Checks reimbursing winners for the cost of the 950 palladium alloy used in their pieces will be issued February 28, 2013.
To learn more about the contest, click here.