September Hong Kong Jewelry Fair Honors Award-Winning Jewelry Designers

Design talents from across the jewelry and gemstone field were honored during the Welcome Reception of the September Hong Kong Jewellery & Gem Fair on September 21. The ewinners of the IU Awards were named and awarded, celebrating their achievements in the field of lapidary arts in colored gemstones, while guests at the event enjoyed a parade of the finalists and winning pieces.

Organized by the International Colored Gemstone Association and UBM Asia, the IU Awards is billed as the world’s first international gem-cutting and jewelry design competition dedicated to colored gemstones. Divided into two major categories—Jewellery Design and Gem-Cutting—the competition received 221 entries from 25 countries and regions.

The Top winners in the IU Awards are:

Jewelry Design Compeition: Dragon Awakening, by Ip Suen Hang of Hong Kong

Gem-Cutting Compeition: Chrysanthemum by Natalia Samorukova of Russian Federation

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Winners of the JNA Awards

The 2012 September Hong Kong Jewellery & Gem Fair, the tradeshow hosted the inaugural JNA Awards during a ceremony held September 20 at The Ritz-Carlton, Hong Kong. The JNA Awards honors and recognizes excellence and achievement in the jewelry trade.

The event, the first of its kind in Asia, was organized by Jewellery News Asia of UBM Asia in collaboration with UBM Awards.

The success of the awards was prevalent in the fact that all of the sponsors agreed to participate in the next edition prior to the awards presentation. Recipients of the JNA Awards for 2012 are as follows:

Lifetime Achievement Award, Nicky Oppenheimer, former chairman of the De Beers Group
Oppenheimer received JNA's highest accolade for his outstanding contribution to the world diamond industry over the course of a career that spans 44 years. The third generation of the Oppenheimers to lead De Beers, he has added his own, distinguished contribution to a family legend that dates back to 1902 when his grandfather, Sir Ernest Oppenheimer, arrived in Kimberley to work as a diamond buying agent. He presided over important changes in the history of the De Beers Group. Under his leadership, De Beers opened up new markets for diamond jewelry in China and India, and established the De Beers' Best Practice Principles, a standard of ethical business behavior that has set the benchmark for other global industries.

Three Decades of Excellence, Chow Tai Fook Jewellery Co Ltd.
The world's largest jewelry retailer by market value continues to raise the bar of excellence and creativity in the gemstone and jewelry industry. The Hong Kong-listed company has an extensive retail network, with more than 1,600 points-of-sale in Greater China, Malaysia and Singapore.

Brand of the Year, Chow Tai Fook Jewellery Co Ltd.
With its immense reach and presence in the Greater China market, the company is viewed as a trendsetter in the industry and one of the most iconic brands in Greater China.

Employer of the Year, Dharmanandan Diamonds Pvt Ltd.
The 30-year-old diamond manufacturer continues to demonstrate the same passion and commitment that it has for a business that celebrates enduring love and romance. It has not lost sight of the core corporate values: excellence in innovation, manufacturing and talent management. By connecting with its employees and keeping them engaged, the India-based company is able to clearly communicate the group's vision and goals with its staff.

Industry Innovation of the Year – Manufacturing, TTF High Jewellery
Since its establishment in September 2002, the Shenzhen-based jewelry manufacturer has been producing jewelry pieces of outstanding design and craftsmanship. TTF has mastered many high-level techniques in jewelry making, including K-gold production, which gives gold lasting color and shine.

Industry Innovation of the Year – Retail, Plukka (HK) Ltd.
Leveraging the power of social media and online marketing, Plukka (HK) Ltd is changing the dynamics of jewelry trade and manufacturing. Launched less than a year ago by partners Jai Waney and Joanne Ooi, the Hong Kong-based e-Retailer is bringing the concept of group buying to a larger audience.

Manufacturer of the Year, Pranda Group
The Thailand-based company prides itself on being a leading supplier of high-quality jewelry to some of the world's most recognizable retail brands, while offering its own branded jewelry products. With a 4,000-strong workforce in seven manufacturing facilities, the company produces more than 10,000 new designs and over 8 million pieces annually.

Retailer of the Year, Luk Fook Holdings (International) Ltd.
One of Hong Kong's most successful home-grown brands, Lukfook operates more than 920 retail outlets worldwide, more than 870 of which are in China. The company uses innovative technology to increase operational efficiency, reduce costs and enhance customer experience.

Sustainability Initiative of the Year, Jewelmer International Corp.
Renowned for its golden South Sea cultured pearls, Jewelmer champions sustainable development in its operations and projects. Based in the Philippines, it adopts the most ecologically friendly practices in its pearl farms in Palawan. Jewelmer's Save Palawan Seas Foundation also provides coastal communities with livelihood alternatives to destructive fishing practices.

Young Leader of the Year (Age 30 or below), Chris Benham (The Inspired Collection)
Benham has led the New Zealand-based company into winning several domestic and international jewelry design awards over a span of just three years. Known for its fresh, innovative approach to diamond jewelry design, The Inspired Collection has also won major design contracts with highly respected companies, including Hiersun, a retailer with more than 200 bridal jewelry shops in China.

The following companies have been selected as honorees of the inaugural JNA Awards 2012, Wonder of the World category:

Vitalit, Thailand, two entries — Vivid Orange Natural Mandarin Garnet in finest cut cushion shape or Natural Spessartite (Garnet); and Pinkish Red Spinel of Pamir Mountains origin.

Makhni Enterprises, Thailand — A pair of rare 8 carats unheated rubies

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Gemfields Revenue and Profit Soar

Miners hold a rough emerald from the Kagem mine in Zambia.

Colored gemstone mining and marketing company, Gemfields, reported that revenue from sales increased 108 percent to $83.7 million, year-over-year, for the year ended June 20. Pre-tax profit for the same period increased 140 percent to $47.8 million.

“They certainly are great numbers,” said Ian Harebottle, CEO of the London (AIM)-listed company, which specializes in emeralds from the Kagem mine in Zambia.

Harebottle, speaking in a video from ProactiveInvestors, said the company spent the first six months of the year focusing on waste removal on the Kagem mine, the company's largest asset and one of the world's major sources of emeralds, in order to expand production at the mine. The last six months of the year was focused on emerald production.

“We had pleasing results but our decision to remove waste and look for long term is paying off,” he said.

The company also has been working hard in diversifying its product base. It owns a 75 percent stake in the Montepuez ruby mine in Mozambique. The company also owns the Kariba amethyst mine in Zambia that it plans to continue to invest in.

Alexandra Mor ring with Gemfields' emerald.

In addition to its mines, the company has been involved in an international advertising campaign focusing on Zambian emeralds and, last month, launched its emerald-focused campaign in the U.S. by having a number of jewelry designers make pieces with its Zambian emeralds.

The company’s cash balance nearly tripled to $36.7 million. Harebottle said that money will not be used for stock dividends but instead will be invested in the growth and diversification plans of the company.

“I believe right now if we could use it within the business, we’ll put it to much better use in terms of shareholder return,” he said.

Below is a video of Harebottle's interview with ProactiveInvestors:

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High-End Brands Showed their Stuff at The Luxury Review Event

YNY Jewels specializes in well-designed pieces made with fancy colored diamonds, colored gemstones and precious metals.

LOS ANGELES — Jewelry and watches shared the spotlight with luxury brands from an array of industries during the recently held The Luxury Review: Los Angeles at The Petersen Automotive Museum.

Bozeman Watch Company is one of a few timepiece companies based in the U.S.

Hosted by Rand Luxury, the event brings together brands from multiple industries including automotive, jewelry, resorts, spirits, electronics and home design. These companies get exposure through a guest list that includes press and media, product analysts, studio executives, product integration and product placement professionals, tv/film producers, personal shoppers, stylists and of course affluent consumers.

Based in the The Woodlands, Texas, Dannini specializes in diamond jewelry designs.

The event was held October 3 and about 30 brands participated. There was food, wine and champagne and free samples from several vendors.

B.M.R. Watches specializes in high-end, high-performance mechanical timepieces primarily for auto racing enthusiasts. These are the creations of watchmaker Bernard Richards. Brand ambassadors in the racing world include: Jean-Eric Vergne, Manu Collard and Cyrille Lemoine.

The next Luxury Review will be held in New York on October 17 at the Metropolitan Pavilion.

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50-Carat Flawless Diamond Sells for $9.5 Million

50.52-Carat Pear-Shaped Diamond that sold for $9.5 million.
CHRISTIE'S IMAGES LTD. 2012

NEW YORK — Big diamonds sparkled during Christie’s sale of Magnificent Jewels in New York on Tuesday. Leading the way was a pear-shaped D color flawless diamond of 50.52 cts., which sold for $9.5 million, or $188,000 per carat, to a private collector. The stone is mounted in platinum and may be worn suspended from a necklace with a 2.28 carat, circular-cut D-color diamond surmount.

It was one of several major diamond lots sold during the auction of 369 lots held during two sessions Tuesday. The other top sellers were:

CHRISTIE'S IMAGES LTD. 2012

* A pair of pear-shaped fancy yellow and colorless diamond ear pendants of 52.78 and 50.31 cts.(pictured above)  that achieved $4.5 million. The diamonds are surmounted by circular-cut fancy yellow and white diamonds Mounted in yellow and white gold. The pendants may be easily swapped or detached completely, giving the owner three options for how to wear them. Its estimate was $4.5 - $6.5 million. The buyer was listed by Christie’s as Aleks Paul of Essex Global Trading.

CHRISTIE'S IMAGES LTD. 2012

* A 68.35-carat oval-cut fancy intense yellow, internally flawless diamond sold for $3.16 million. The gem with excellent polish and symmetry had an estimate of $2.2 - $3.2 million.

CHRISTIE'S IMAGES LTD. 2012

* A pear-shape fancy light pink SI1 diamond ring sold for of 10.52 cts sold for $2.21 million, or $210,000 per carat; well above its estimate of $1 million to $1.5 million.

* A 28.20-carat square-cut fancy intense yellow VVS1 diamond ring by Van Cleef & Arpels that sold for $902,000.

CHRISTIE'S IMAGES LTD. 2012

* A 10.05-carat pear-shaped diamond on a ring, flanked on either side by a pear-shaped diamond, mounted in platinum took in more than $1.2 million.

* A 12.05-carat pear-shape F color flawless diamond that sold for $842,500.

* An 11.68-carat marquise-cut F color VS1 diamond ring by Harry Winston that sold for $746,500.

All totaled, the auction achieved $50 million and had a sell-through rate of 87 percent by lot and 93 percent by value.

“Private collectors and dealers reacted more than positively to a 369-lot auction that was finely-tuned in terms of prices and selection of gems to current market conditions,” said Rahul Kadakia, Head of Jewelry, Christie’s Americas and Switzerland. “Natural pearls, colorless flawless diamonds, and colored diamonds of high quality once again dominated the day, making for a vibrant atmosphere in the saleroom.”

CHRISTIE'S IMAGES LTD. 2012

Natural pearls again proved to be a dynamic force in the auction market. This was underscored by the sale of a double strand natural pearl necklace for $3.66 million (pictured above). It has 120 large-sized individual pearls, ranging in size from 6.50 mm to 12.25 mm in diameter, and ranging in coloration from white to light cream, with subtle rosé and green overtones and superb luster. It is accented with a 3-carat, D color diamond clasp signed by Cartier. Its estimate was $2.8 – $3.5 million.

During the morning session, a single strand of 83 natural pearls, measuring from approximately 3.15 to 9.75 mm, sold for $158,500, nearly double its high estimate; and an antique diamond and sapphire brooch set with a natural baroque pearl, measuring approximately 15.90 – 16.70 x 20.40 mm, brought in $170,500, nearly tripling its high estimate.

CHRISTIE'S IMAGES LTD. 2012

In addition, a 32.31-carat cushion cut Burmese sapphire ring (pictured above) sold for $986,500, nearly double the high estimate of $500,000.

Bidding was robust throughout the day, gaining strength in the afternoon session, with dealers in the back of Christie's saleroom loudly clamoring for attention, competing with those in the front of the room and many phone and online bidders.

Sharing the auctioneer duties was Kadakia, along with Christie's Asia president, François Curiel, the Christie’s jewelry veteran who moved to Hong Kong recently to head the auction house’s jewelry operation in the booming Asia market.

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Tiffany Promotes Senior Executives

Frederic Cumenal

Beth Canavan

Tiffany & Co. said Wednesday that it is shifting and expanding responsibilities for two executive vice presidents, Beth Canavan and Frederic Cumenal.

Cumenal, 53, joined the international luxury jewelry retailer in March 2011 from the LVMH Group. He has been responsible for Tiffany's businesses in Asia, Japan, Europe and Emerging Markets. Effective immediately, Cumenal will expand his role to assume responsibility for all of Tiffany's worldwide sales activities.

Canavan, 58, joined Tiffany in 1987 and through progressively greater responsibilities has headed the Americas region in recent years. She will now report to Cumenal who reports to Michael J. Kowalski, Tiffany's chairman and chief executive officer.

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Harry Winston Is Not For Sale

The Harry Winston salon in Paris.

Harry Winston Diamond Corp. issued a statement Thursday saying it is not in talks to sell its luxury jewelry and watch business.

“While it is the company’s general policy not to comment on market rumors, it confirms that it has received various indications of interest regarding a potential purchase of its luxury brand segment. It is not in active negotiations regarding any such transaction,” it said in the statement. “The company does not intend to make any further public announcements regarding this matter unless it concludes that they are warranted by the circumstances or are required by law.”

The statement came as a result of stories from Reuters and other outlets stating that Harry Winston “has been approaching potential buyers such as luxury groups LVMH and PPR.”

Harry Winston Diamond Corp. is a business with assets in the mining and retail segments of the diamond industry. Harry Winston supplies rough diamonds to the global market from its 40 percent ownership interest in the Diavik Diamond Mine. The company’s luxury brand segment is a diamond jeweler and luxury timepiece retailer with salons in key locations throughout the world.

Harry Winston shares ownership of the diamond mine in the Northwest Territories of Canada with mining giant Rio Tinto, which owns a 60 percent stake. The miner has announced its intention to sell all of its diamond mines to concentrate in larger mining segments. Harry Winston was reportedly in talks to buy the mine outright.

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‘Pigeon’s Blood’ Ruby Necklace Leads Diverse Christie’s Hong Kong Jewelry Sale

CHRISTIE'S IMAGES LTD. 2011

It’s a rare jewelry auction these days where diamonds are not the most prestigious items for sale. This auction will break the trend as leading the sale of Christie’s Hong Kong Magnificent Jewels Autumn sale is a Burmese no heat “pigeon’s blood” ruby and diamond necklace (pictured above) with matching earrings (below) by James W. Currens. The necklace has an auction estimate of $3.5 to $5.5 million; and the earrings have estimate of $2.5 million to $3.5 million.

CHRISTIE'S IMAGES LTD. 2011

Designed as twenty-six graduated oval-shaped rubies weighing between 5.38 and 1.27 carats, each ruby comprising the necklace named, “Red Scarlet” is accented by a cluster of marquise and pear-shaped diamonds, mounted in platinum and 18k yellow gold. The matching pair of earrings are titled the “Red Butterflies” for their shape, and each feature a pair of Burmese rubies over 7 carats. The rubies all come from the Mogok Stone Tract in Upper Burma, which is considered to be the source for the finest quality “pigeon’s blood” rubies, the term used to describe the brightest and most valuable red color for rubies.

More than 300 items will be on sale for the November 27 auction at the Hong Kong Convention & Exhibition Centre. The pre-sale estimate is valued at approximately $70 million. An assortment of diamonds, emeralds and sapphires from the world’s legendary mines, natural seawater pearls, and, being Hong Kong, jadeite jewelry will be among the items featured. Highlights include: 

Emerald, pearl and diamond earrings in platinum, featuring Colombian pear-shaped emeralds weighing 23.34 carats and 23.18 carats. Its estimate is $3.5 million to $4.8 million. CHRISTIE'S IMAGES LTD. 2011

Diamond and pearl earrings, featuring a pair of 6-carat pear-shaped diamonds from the legendary Golconda mine in India. Its estimate is $1.2 million to $1.9 million.  CHRISTIE'S IMAGES LTD. 2011

A natural pearl and diamond necklace with an estimate of $1.2 million to $1.5 million. CHRISTIE'S IMAGES LTD. 2011

A lavender jadeite bead necklace, consisting of 63 slightly graduated jadeite beads measuring from 8.8 to 11.3 mm, and a jadeite cabochon and diamond clasp mounted in 18k white gold. Its estimate is $1 million to $1.5 million. CHRISTIE'S IMAGES LTD. 2011

A 36.58-carat fancy brown diamond ring with an estimate of $1 million to $1.5 million. CHRISTIE'S IMAGES LTD. 2011

An 8.59-carat fancy pink cut-cornered rectangular-cut diamond and sapphire ring, by Paris-based American jeweler, JAR. Its estimate is $3 million to $4.5 million. CHRISTIE'S IMAGES LTD. 2011

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Shanghai Fair Provides Buying Opportunities for Upcoming Holidays

Jewelry retailers in Asia will have a final opportunity to stock their shelves for the upcoming Christmas holidays and Chinese New Year festivities during the China International Gold, Jewellery & Gem Fair – Shanghai (Shanghai Fair), from November 9 – 12 at the Shanghai World Expo Exhibition and Convention Center.

More than 300 exhibitors from 18 countries and regions will showcase the latest contemporary jewelry, classic bestsellers and trends during the eighth edition of the annual trade fair, organized by UBM Asia.

In 2011, retail sales of consumer goods in Shanghai exceeded RMB677 billions, up 12.3 percent from 2010. Retail sales of gold and jewelry alone grew roughly 25 percent, according to data from the National Bureau of Statistics of China.

Given its November schedule, the Shanghai Fair provides the last-minute opportunity for buyers wanting to add to their inventory for the busy Christmas and Chinese New Year festivities.

Pavilions dedicated to luxury jewelry manufacturers, jadeite manufacturers from Taiwan and gems from Sri Lanka are among the features of the fair.

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Blue Nile Sales Up 19.8 Percent

Blue Nile said Thursday its net sales increased 19.8%, year-over-year, to $89.8 million for the third quarter due to a increases in all its product categories, including its new focus on fashion jewelry, and a large increase in new customers. However, international sales fell for the period ended September 30.

Operating income for the diamonds and jewelry Internet retailer totaled $2.7 million, representing an operating margin of 3 percent of net sales. Net income totaled $1.7 million, or $0.14 per diluted share. Non-GAAP adjusted EBITDA for the quarter totaled $4.8 million.

"We are excited to report solid results in the third quarter, with accelerating revenue growth and expanding earnings per share, said Harvey Kanter, president and CEO of the Seattle-based company. “The execution of our strategy is clearly on track. Investments we made in marketing and pricing are working and building momentum behind the strength of our diamond engagement products. Sales of our non-engagement products also improved this quarter, and we are only beginning to launch an assortment of new jewelry aimed to further accelerate our growth. With continued steady execution of our strategy coupled with exciting product offerings for the holiday season, we believe we are well positioned to achieve our goals for 2012.”

Among the highlights for the third quarter:

* U.S. engagement net sales increased 31.5 percent to $54.1 million.
    
* U.S. non-engagement net sales (a new focus for the company) increased 12 percent to $21.8 million.
    
* International net sales fell 3.3 percent to $14.4 million for the third quarter 2011. Excluding the impact from changes in foreign exchange rates, international net sales decreased 1.5 percent.
    
* Gross profit totaled $16.9 million. As a percent of net sales, gross profit was 18.8 percent compared to 19.8 percent for the third quarter of 2011.
    
* New customers grew 22.4 percent.  
    
* Selling, general and administrative expenses were $14.3 million, compared to $12 million in the third quarter of 2011.
    
* At the end of the third quarter, cash and cash equivalents totaled $30.2 million.

In its financial guidance, the company said it expects fourth quarter net sales to be between $140 million and $153 million, with earnings per diluted share are projected at $0.44 to $0.50.

For the fiscal year it expects net sales to be between $404 million and $417 million, with earnings per diluted share are projected at $0.70 to $0.75.

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Montblanc’s Villeret Luxury Watches Keep The Minerva Soul

The home of traditional Swiss watch company now owned by luxury brand, Montblanc. Photo credit: Anthony DeMarco

VILLERET, Switzerland — In the Swiss watch industry, it could be said that the more things change the more they stay the same. This is particularly true for the watch company known today as “Montblanc Manufacture in Villeret.”

The company was founded in 1858 as the H. & C. Robert watchmaking factory by brothers Charles-Yvan and Hyppolite Robert inside the family house in this picturesque village on the edge of the Jura mountains. The company took on the Minerva name in 1923 and kept it for 84 years. 

Some of the components that make up a watch movement. All pieces are made in house in the Swiss watchmaking tradition. Photo credit: Anthony DeMarco

Almost from the beginning the company, which moved from its residential workshop to a true manufacturing facility across the street in 1887, produced in-house movements, particularly its chronographs that were so accurate and efficient they were used in the battlefields of World War I and II and to keep time for the events of the 1936 Winter Olympics. It was one of the first companies to produce a chronograph pocket watch, one of the first to produce movements for wristwatches, and one of the first to build a chronograph that could track hundredths of a second. The company also produced chronographs and classic watches for the general public. Needless to say the brand’s heritage and quality of their movements produced a loyal following.

A watchmaker creates one of the individual components of a movement. Photo credit: Anthony DeMarco

The company’s biggest change happened in 2000 when Italian investor Emilio Gnutti purchased it and changed its mission to produce haute horlogerie timepieces in-house using the same hand-made techniques and the philosophy of the brand. The new owner brought in Demetrio Cabiddu as its technical director. Then a change of seismic proportions happened in 2006 when luxury goods conglomerate, Compagnie Financière Richemont, purchased the company and from my understanding assigned the watch manufacturer to Montblanc—one of the many luxury brands it owns.

The balance spring (also known as a hairspring) is attached to the balance wheel to control the speed at which the wheels of the timepiece turn, and thus the rate of movement of the hands. These items are hand-made inside the factory. Photo credit: Anthony DeMarco

In the new atrium on the top floor of the historic manufacturing facility, Cabiddu, who is extremely passionate and protective of the company’s heritage, said he had some sleepless nights wondering what Montblanc, which was new to the staunchly traditional Swiss watch industry, was going to do with the company and its heritage. 

A skilled watchmaker attaches the balance spring to the balance wheel and then sets it over a timing device with a reference balance. She checks the difference in beats and bends the spring until they match.  Photo credit: Anthony DeMarco

“Of course I was very worried, I was scared,” Cabiddu said in French through a translator. “There was a need to preserve the heritage and credibility of Minerva and this 150 years of expertise.” He added, “People who don’t have fear are people who don’t have a conscience.” 

Some of the older equipment in the factory includes this large stamping machine. Photo credit: Anthony DeMarco

It turned out that there was no need to fear. Montblanc, the German company with its own 106-year history as a manufacturer of luxury writing instruments, not only bought into the legacy of Minvera, but in some cases expanded upon it. 

Another example of the early equipment that is still being used in the Villeret factory is this vertical drill. Photo credit: Anthony DeMarco

In fact, Montblanc’s inexperience in the Swiss watch industry “turned out to be an advantage,” Cabiddu said. “Montblanc trusted us. In hindsight it turned out to be the best choice.” 

Before Montblanc took control of the company, it was known for 84 years as Minerva. The toolboxes still carry the name and according to technical director, Demetrio Cabiddu, still maintains the Minerva heritage. Photo credit: Anthony DeMarco

There were some changes. Most obvious was the name change to reflect the location of the company. “Losing the name was a solution I had to take,” Cabiddu said. “Today I laugh about it a lot more. I used to cringe (when hearing the new name). In hindsight it was probably the right thing to do as we move into the future.” 

Two persons are dedicated to working with clients all over the world to create hand-drawn models of bespoke watches they would like to own. Photo credit: Anthony DeMarco

Montblanc also renovated the manufacturing facility. However, restoration is a better way to describe the work. Apart from the new, modern atrium with a view of the countryside, a fresh coat of paint and some structural repairs, little appears to have changed. 

Montblanc Collection Villeret 1858 Vintage Tachydate

Montblanc renamed the building the “Institut Minerva de Recherche en Haute Horlogerie,” and created a foundation under the same name, which Montblanc said in a statement is, “dedicated to classical fine watchmaking and the upholding of traditional skills and special complications,” adding that it “supports young watchmakers through internships, commissioning research on the history of traditional watchmaking and initiates new developments with traditional techniques in watchmaking.”

Montblanc Collection Villeret 1858 Tourbillon Bi-Cylindrique

It isn’t clear to me how this institute or foundation operates. What is clear is that it hasn’t changed the focus of the company. Villeret is a watch manufacturer that employs 36 full-time workers and four consultants and produces between 200 and 250 limited-edition hand-made timepieces per year, Cabiddu said. Everything is done in house with the exception of the dials, hands, straps and cases. 

Montblanc Collection Villeret 1858 Régulateur Nautique Timepiece

Large stamping machines and vertical drills that date back approximately 80 years share the building with modern CNC and CAD equipment. Some machines are so old parts aren’t available anymore so watchmakers have to hand-build the parts and even the tools to repair the equipment. The company produces chronographs, tourbillons and classic watch lines. In addition, it creates bespoke timepieces for private clients. Two designers are dedicated to creating hand-drawings of the timepieces based on specifications of these collectors. 

The company was founded in 1858 as the as the H. & C. Robert watchmaking factory by brothers Charles-Yvan and Hyppolite Robert in the house across the street from the current manufacturing facility. Photo credit: Anthony DeMarco

With its trademarked V-shaped bridge and a small arrow, the highly polished movements were always a site to behold. However, the outside of the watches were traditional and one dimensional. Montblanc added variety to the overall appearance of the timepieces, Cabiddu said.

The company, formerly called Minerva, was known for its chronograph movements. Here is some the company's earlier chronograph pocket watches. Photo credit: Anthony DeMarco

“Our movements were always beautiful,” he said. “Montblanc added a diversification of the aesthetic.” 

The company still does repair work on antique watches that were built prior to Montblanc's ownership of the brand. Photo credit: Anthony DeMarco

But still he describes the timepieces they make as “understated luxury,” and added that Montblanc’s own history shows that it respects and enhances this philosophy. “Montblanc is not really big with being in your face.” 

This philosophy of beauty could certainly describe the town that now shares the company’s name. Very little seems to have changed in the countryside outside the building, yet its prosperity shows that it is able to adjust to changes in the world while maintaining its heritage. Looking out from the atrium just across the street is the yellow-colored house where the watch company was founded more than 150 years ago, now occupied by a new family. Beyond the house cows graze on a sheet of green. Past the meadow are the Jura mountains covered with the flaming reds, oranges and yellows that represent the leaves of autumn on this late October day. If that’s not enough, above the cliffs in the powder blue late afternoon sky is a crescent moon.

It’s a scene that one could easily describe as understated luxury.

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Georg Jensen Acquired by Investment Group for $140 Million

Georg Jensen Fusion Rings

Investcorp, a group that invests in what it calls “alternative products,” said Monday that it has signed a definitive agreement to acquire Danish luxury silver brand, Georg Jensen, for $140 million from private equity group Axcel Capital Partners.

With the sale comes a change in key personnel. David Chu, founder of Nautica, will join the company on closing as chief creative director and co-chairman of the Investcorp board. Also joining the board on closing will be Guy Leymarie, former CEO of DeBeers Diamond Jewellers, Cartier International and Dunhill.

Georg Jensen is a global luxury brand that designs, manufactures and distributes silver jewelry, watches, fine silverware and high-end housewares. With a history that spans more than 100 years, the Georg Jensen brand has a deep heritage in fine silver goods and represents quality craftsmanship and timeless designs.

“We are pleased to be entrusted with taking Scandinavia's preeminent luxury brand to a global level. We believe that in partnership with the current solid management team, said Hazem Ben-Gacem, head of Investcorp's European corporate investments activities. “Georg Jensen stands to become one of the leading hard luxury brands in the 21st Century.”

Georg Jensen was founded by the eponymous Danish designer in 1904. Today the business has 94 fully owned stores and three franchised stores around the world. The vertically integrated company has approximately 1,200 employees worldwide. In 2011, the company had sales of approximately $160 million. Georg Jensen is part of the Royal Scandinavia Group, which was bought by Axcel in 2001. 

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Pandora Produces Charming Q3 Sales and Profit Gains

Danish jewelry company Pandora said Tuesday that third quarter revenue increased 14.3 percent, year-over-year, to DKK 1.79 billion ($308 million) with double-digit gains across all geographical markets. Net profit for the period increased by 11.4 percent to DKK 380 million ($65.2 million).

This is a strong turnaround when compared with second quarter results in which the company—best known for the manufacture, distribution and marketing of silver charm jewelry—said its sales fell by 9.5 percent to 1.26 billion DKK ($210.2 million) with profit during the same period down 89.9 percent to 63 million DKK ($10.5 million).

Pandora also said Tuesday that its stock balancing plan (replacing discontinued stock) is continuing as planned. In the third quarter, the company received returns of discontinued products with a wholesale value of DKK 86 million ($14.7 million), and replaced it with merchandising costing DKK 127 million ($21.8 million). In 2012 Pandora received returns of discontinued products valued at DKK 609 million ($104.6 million), and replaced DKK 599 million ($102.8 million).

Revenue by geographic region is as follows:

• Americas increased by 21.9 percent (9.5 percent in local currency), with U.S. sales up 15.8 percent (2.6 percent in local currency).
• Europe increased by 13.1 percent (11 percent in local currency).
• Asia Pacific decreased by 10.7 percent (17.3 percent in local currency).

Branded revenue as percentage of total revenue increased to 81.3 percent, compared with 73.6 percent in third quarter of 2011. Gross margin was 64.1 percent, compared with 73.6 percent in the third quarter of 2011.

EBITDA margin was 28 percent, compared with 34.2 percent in Q3 2011, a decrease of 6.2 percent to DKK 503 million ($86.3 million). EBIT margin was 25.8 percent compared with 32.2 percent in Q3 2011, an 8.5 percent drop to DKK 463 million ($79.5 million).

The company, which sells its jewelry through retail jewelers and its own branded retail stores, updated its outlook, saying it expects revenue for 2012 to be above DKK 6.3 billion ($1.08 billion), from its previous guidance above DKK 6 billion.

“I am happy to report that we continue to perform in line with our ‘18 months turn-around plan,’” said Björn Gulden, Pandora CEO. “Third quarter developed even a little better than we expected and we have, based on the tailwind from the currency development, decided to slightly upgrade our revenue guidance. One of our major initiatives ‘The stock balancing campaign’ was continued, mainly impacting the U.S. and third-party distribution, during Q3 2012. We have now largely concluded the campaign and it will, as communicated earlier, be finished by end of 2012.”

Gulden added its spring merchandise sold well and its fall merchandise had a strong start for the third quarter.

“The year is not yet finished,” he said. “We have our most important quarter to come, but we feel confident that our improved product, our lower prices and our other operational improvements will put us in the position of achieving our updated financial goals for the full year.”

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Tiffany & Co. to Open Flagship Paris Store on Champs Elysées

Rendering of Tiffany's planned store in Paris.

Tiffany & Co. said Tuesday that it plans to open a new European flagship store in Paris. The 10,000-square-foot, multi-level store will be located at 62, Avenue des Champs Elysées and is expected to open in 2014.

"This is a significant development and sales opportunity for Tiffany & Co. While we have been successful in operating three smaller stores in Paris, establishing this store on the Champs Elysées will be the ultimate symbol of Tiffany as a truly global luxury brand," said Frederic Cumenal, executive vice president, Tiffany & Co. "This is a preeminent location that firmly places Tiffany & Co. on an international stage, in the heart of a city where people from all over the world come to visit and shop."

The opening on the Champs Elysées will mark a new milestone in Tiffany's connection to Paris, which began in 1850 when the company established its first store. In 1999, Tiffany returned to Paris with a store on rue de la Paix.

In March, the owner of the rue de la Paix building that housed Tiffany’s Paris store, placed the property for sale. 

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Consumers Online Spending Up 15% in Q3

Online retail spending for the third quarter increased 15 percent year-over-year to $41.9 billion, representing the 12th consecutive quarter of positive year-over-year growth and eighth consecutive quarter of double-digit growth, according to comScore, Inc.

Gian Fulgoni, chairman of the Reston, Va.-based company that specializes in measuring digital data, said the numbers are consistent with the prior quarter and confirm “the strength in the e-commerce sector, despite a few negative headwinds in the macroeconomic environment during the quarter. Such performance offers some optimism as we approach the holiday season, especially given recent improvements in consumer sentiment.”

He added, “With the housing market beginning to show signs of recovery in addition to increasing–if still underwhelming–job growth, there appears to be strong enough footing to support a very healthy online holiday shopping season.”

Other highlights from comScore’s Q3 2012 U.S. retail e-commerce sales estimates include:

* The top-performing online product categories, according to the survey were: Digital Content & Subscriptions, Consumer Electronics, Event Tickets, Apparel & Accessories, and Computer Software. Each category grew at least 16 percent year-over-year.

* About 37 percent of U.S. consumers say they have engaged in “showrooming” behavior where they use a smartphone while in a retail store to check prices or to purchase a product online, representing a 5-percent increase in the past two quarters.

* According to the survey, 48 percent of U.S. consumers now rate the economy as “poor” an 8-percentage point improvement vs. the prior quarter and the most pronounced improvement since early 2009.


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