Articles and News
INDUSTRY NEWS: SALES UP FOR PANDORA, BLUE NILE; MORE MINING TROUBLE; NEW HR VP AT GIA November 07, 2012 (0 comments)
By The Numbers: Q3 Good For Pandora, Blue Nile, and QVC, But Berkshire Hathaway Jewelers Flat
Merrick, NY—Both Pandora and Blue Nile saw double-digit increases for the third quarter, while TV shopping channel QVC saw sales edge up slightly.
The Copenhagen, Denmark-based Pandora reported a 14% jump in revenue and 11% jump in net profit for the quarter, welcome news after its beleaguered performance last year. U.S. sales grew 16% overall, and sales at its branded concept stores grew 5%, Though rising materials costs, currency fluctuations, and price adjustments drove gross profits down slightly and gross margins down from 74% to 64%, company officials say its 18-month recovery plan is on track. A one-for-one stock-balancing program put in place as part of the recovery plan is nearing its end as well, says the company.
Q3 2012 marked a record growth rate for engagement and wedding ring sales at Seattle, WA-based Blue Nile. According to this report in National Jeweler, the e-tailer’s third quarter sales rose 20% over the same period last year, although its net income for the period still registered a decline. Engagement ring sales—its core business, responsible for 60% of total revenue—rose 32% in the United States, while non-engagement ring business rose 12%. The company announced its fourth-quarter plans include the launch of a line of bridal rings (left) by couture red-carpet fashion designer Monique Lhullier, which will be the e-tailer’s only branded line, plus an expanded, editor-curated assortment of non-bridal jewelry in keeping with its previously announced plans to expand its non-bridal offerings.
At QVC, sales edged up 3% in the third quarter compared to last year, with strong sales in apparel, accessories, beauty, cooking, and dining. The company also reported that online sales now account for a full 1/3 (33%) of the company’s revenue, and mobile orders have nearly doubled.
But according to the latest report from Berkshire Hathaway, which owns Borsheim’s, Helzberg’s, and Ben Bridge Jeweler, Q3 brought only modest gains in its retail sector (including furniture, jewelry, and See’s Candies) with most of the gain coming from the furniture sector and flat revenues and lower earnings the result at its jewelry stores (see page 32 of the report.) The report did not break out figures for Richline, the firm’s gold jewelry manufacturing division.
Separately, JCK reports Tiffany has plans for a new Paris flagship on the Champs Elysee, and Georg Jensen has been bought by Investcorp.
More Upheaval in Mining Sector
London, United Kingdom—Less than two weeks after Cynthia Carroll announced she would step down as head of Anglo American—which owns De Beers—another mining company with diamond holdings is looking to shed its CEO. BHP Billiton, which owns the Ekati diamond mine in Canada, is looking for a successor to CEO Marius Kloppers. The process, which the Financial Times reports could take up to two years, is one of a number of mining company executive departures. The others are in the non-precious mining sector.
Separately, workers at South Africa’s Gold Fields gold mine have returned to work after a 23-day strike, reports the Mail & Guardian. But one of the country’s smaller producers, Village Main Reef, said workers at its Buffelsfontein gold mine walked off the job Monday, suggesting that mine labor unrest in the country is far from over. And Anglo American Platinum, the world’s largest producer, is still struggling to end wildcat strikes by more than 32,000 miners at three of its locations.
GIA Appoints VP of Global Human Resources
Carlsbad, CA--GIA (Gemological Institute of America) has appointed Mark Nechita as vice president of global human resources. Nechita, who has extensive international experience in various industries including medical diagnostics and devices, high-growth consumer products, mining, and software, brings both human resources and operational expertise to GIA.
“I am pleased to welcome Mark Nechita to our outstanding HR team,” said Donna Baker, GIA’s president and CEO. “Mark’s diverse global experience will play an important role as GIA develops and improves to meet the needs of the global market while remaining focused on our mission of ensuring the public trust in gems and jewelry. We look forward to the wealth of knowledge and the enthusiasm Mark brings with him to GIA.”
Nechita joins GIA from DJO Global, an international medical device company based in Vista, CA. He takes over the role formerly held by Linda Scholl.