Jewelers of the Hudson Valley at Forbes Galleries

Lapis Wave Bracelet by Tom Herman, lapis lazuli,18k gold, platinum, enamel and diamonds.  Photo credit: Allen Bryan

Living within the immediate vicinity of the New Paltz area in upstate New York are a number of important studio jewelry artists whose work will be the focus of an exhibition at The Forbes Galleries in New York, April 9 – June 25.

Jewelers of the Hudson Valley, will feature the work of seven prominent jewelry artists: Jennifer Trask, Tom Herman, Pat Flynn, Jamie Bennett, Myra Mimlitsch-Gray, Arthur Hash and Sergey Jivetin. In addition, there will be pieces from the collection of the Samuel Dorsky Museum, State University of New York/New Paltz on display and selected works by students and graduates of the metals’ program at SUNY/New Paltz.

The guest curator is Elyse Zorn Karlin, co-director of the Association for the Study of Jewelry & Related Arts, Post Chester, N.Y., which is sponsoring the exhibition.

The Forbes Galleries are located within the lobby of Forbes magazine headquarters in New York, 62 Fifth Ave. The Galleries are open free to the public 10:00 a.m. - 4:00 p.m. on Tuesdays through Saturdays.

A curator’s tour of the exhibition is schedules for June 18 at 2 p.m. for anyone interested in signing up or one can be booked for groups of 10 or more by contacting Elyse Karlin at ekarlin@usa.net. There is no charge for a tour.

The Association for the Study of Jewelry and Related Arts, LLC is dedicated to the advancement of jewelry studies by individuals and in schools, museums, and institutions of higher learning. AJSRA publishes Adornment Magazine, a weekly newsletter, runs an annual fall event, numerous additional special events, and offers a number of other benefits.

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‘Jewelers for Japan’ Auction Raises $20,000

Ajaline.com raised more than $20,000 to benefit relief efforts in Japan through their “Jewelers for Japan” auction on Charity Buzz from April 5 to April 19. A total of 19 jewelry houses donated jewelry for the auction.

Ajaline, founded by Meeling Wong and Jim Conte, is a members-only flash-sales site devoted to luxury fine jewelry and watches.

Proceeds raised from “Jewelers for Japan” will benefit Japan Society’s Earthquake Relief Fund, supporting four specific organizations:

* Tokyo Volunteer Network for Disaster Relief – a network of approximately 3,000 volunteers focusing on food, water, blankets and other goods from a distribution center in Tome, Miyagi Prefecture;

* JEN – an international humanitarian and relief development organization providing emergency relief supplies to the fishing village of Ishinomaki, Miyagi Prefecture, among the hardest hit by the tsunami;

* ETIC – a Japanese organization consisting of young social and business entrepreneurs committed to providing emergency relief goods to the elderly, disabled, and those with special medical needs; and

* Japan NPO Center – a center, partnering with the Civil Society Initiative Fund, working to identify and support local community-based non-profit organizations and volunteer organizations involved in relief and sustainable recovery work throughout the affected regions with small grants

Jewelry brands who participated in the auction were H.Stern, Mikimoto, Kimberly McDonald, Jill Platner, Coomi, House of Waris, Buccellati, Paolo Costagli, Robert Lee Morris, Robin Rotenier, Lagos, Monica Rich Kosann, Charriol, Delatori, Gurhan, Yossi Harari, Sally Sohn, Emily & Ashley and Diamond in the Rough.

Japan Society is an American nonprofit organization supported by individuals, foundations and corporations that brings the people of Japan and the United States closer together through mutual understanding, appreciation and cooperation.

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GIA Offers iPad Apps for Consumers and Jewelers

It’s a new year and the Gemological Institute of America—the education, laboratory and research organization that invented the 4Cs—has iPad apps that are designed to enhance the jewelry and gemstone buying and selling experience for consumers and retailers.

GIA’s newest app is just for retailers and designed to use at the point-of-sale (top image). It provides interactive 4Cs education that retailers can show consumers, guidance on using GIA grading scales, information on diamond treatments and access to GIA grading reports. Follow this link to learn how to download the app.

An iPad app for consumers was introduced in November and provides in depth 4Cs education, how to read a diamond grading report and information on various diamond treatments.

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Longtime Jewelers of America CEO to Resign

Matthew A. Runci, president and CEO of Jewelers of America, announced Thursday that he is retiring from the national trade association for businesses serving the fine jewelry retail marketplace after 17 years at the helm. His resignation becomes effective at the end of the year.

“Matt’s contribution to Jewelers of America and its industry leadership role, both nationally and internationally, is immeasurable. In addition to strengthening good governance practices at JA and developing an active and dedicated board of directors, he was instrumental in the formation of the Responsible Jewellery Council and has been involved from the start with the Kimberley Process,” Georgie Gleim, JA board chair, said in a statement. “Our industry owes him a debt of gratitude. His dedication to JA has ensured that a transition to new leadership will be a smooth process, positioning the organization for its future.”

Runci informed the association’s executive committee of his decision on January 6. JA has asked Runci to remain during a transition period and to continue to assist the association with its work in the area of responsible business practices in 2013.

A search committee has been appointed that will commence work shortly, JA said. The association actually began formal succession planning in 2009.

Runci joined JA as President & CEO in 1995. He had previously served as CEO of Manufacturing Jewelers & Suppliers of America, where he held several positions over a 16-year period. Prior to that, he taught international politics, law and foreign policy at the university level.

He holds a PhD in Foreign Affairs from the University of Virginia and a BA in History from Boston College. He is a member of Phi Beta Kappa, the 24 Karat Club of New York City and is a past president of the Boston Jewelers Club.

Runci and his wife, Laraine, reside in Connecticut. They have two children and six grandchildren.

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Signet Jewelers Sales Up 1.4%; Comps Up 1.2%; Calendar Shift Affects Sales

Signet Jewelers Ltd., the largest specialty retail jeweler in the U.S. and U.K., said Thursday that sales for the first quarter increased 1.4 percent to $900 million. Same store sales for the period, ended April 28, increased 1.2 percent. The company said a calendar shift due to a late Mother’s Day adversely impacted sales by an estimated $32 million or 370 basis points.

The Bermuda-based company reported that income before taxes rose 9.1 percent to $128.5 million and diluted earnings per share increased 10.3 percent to $0.96.

“We anticipated the impact of the Mother’s Day promotional calendar shift and managed our business accordingly,” said Mike Barnes, Signet CEO. “In the second quarter to date, which benefited from the calendar shift, our same store sales, including Mother’s Day, were up strong double-digits.”

The retailer said it provided guidance in the second quarter “due to the complexity of the calendar shift.” It expects same store sales in the second quarter to high single digit range and fully diluted earnings per share are expected to range from $0.78 - $0.84 based on an estimated 84 million weighted average shares outstanding.

In the company’s U.S. division, (which generally accounts for about 80 percent of the company’s total sales) sales increased 1.8 percent to $751.5 million. Same store sales were up 1.2 percent and were impacted by 440 basis points due to the calendar shift. Signet’s brands in the U.S. include Kay and Jared jewelry stores and several regional brands.

In the UK division, sales declined 0.8 percent to $148.5 million. Same store sales were up 1.2 percent (13 weeks ended April 30, 2011: 0.2%). Signet’s brands in the U.K. include H.Samuel and Ernest Jones.

Other financial highlights for the first quarter include:

* The gross margin was $353.7 million, representing 39.3 percent of sales.

* Gross margin in the U.S. increased $5.8 million compared to the first quarter of the prior year, driven by a favorable gross merchandise margin movement of 40 basis points, leverage on store occupancy expenses and increased income from credit related fees, partially offset by an impact of $4.7 million on the U.S. net bad debt expense, due to a change in the number of credit billing cycles included in the quarter.

* Gross margin in the UK was $1.8 million lower than that of the first quarter of the prior year, primarily as a result of an unfavorable foreign currency impact and a decline in gross merchandise margin of 170 basis points attributed to the level of promotional activity and merchandise mix, which were partially offset by lower store occupancy and store operating expenses.

* Selling, general and administrative expenses were $264.5 million, or 29.4 percent of sales.

* Other operating income, net, increased to $40.2 million, or 4.5 percent of sales.

* Net operating income was $129.4 million, up $10.7 million or 9 percent.

* In the US division, net operating income was $137.7 million, up $11.5 million or 9.1 percent.

* In the UK division, net operating loss was $3 million, up $2.8 million.

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Jewelers of America Names Dave Bonaparte for Top Spot

David Bonaparte

The national trade association for fine jewelry retailers in the U.S. has tapped a jewelry industry veteran and the former manager of a competing tradeshow for its top post.

Jewelers of America said Sunday that it has named David Bonaparte as its president and CEO. He will succeed Matthew A. Runci when he retires at year’s end, after leading the trade association for 17 years. Bonaparte will work with Runci starting October 1, officially taking the helm on January 1, 2013.

Bonaparte was senior vice president of JCK Brands for Reed Exhibitions, a promotion that was granted a year ago. He has spent at least 16 years managing the JCK Las Vegas show and all of its affiliate tradeshows (such as Luxury at JCK and Swiss Watch at JCK) that were added over the years. JCK Las Vegas is one of largest and most important jewelry tradeshows in the world. Other jewelry shows directly under his watch include JCK Toronto and Luxury Privé, held in New York and Panama City. He was also the global leader for the jewelry portfolio at Reed Exhibitions worldwide. His responsibilities in recent years also included leading jewelry trade publication, JCK magazine.

Bonaparte is also an advocate in connection with issues and events affecting the jewelry industry. He was instrumental in helping Reed Exhibitions develop The JCK Industry Fund, which provides $400,000 annually to individuals, groups and associations that develop programs to benefit and promote the industry.

JCK Las Vegas also happens to be the major competitor to Jewelers of America tradeshow held twice a year in New York.

“Through a lengthy and thorough process, the committee selected Dave based on his proven leadership skills, knowledge of the industry and his vision for the future of the organization,” said JA board chair Georgie Gleim of Gleim the Jeweler. “We believe he will be a passionate leader for Jewelers of America, providing guidance and inspiration for JA’s Board of Directors and staff, while serving as a strong advocate for the association and the interests of its members.”

Bonaparte has been a supporter of the American Gem Society, Manufacturing Jewelers and Suppliers of America, Jewelry Information Center, Jewelers Security Alliance, Jewelers Vigilance Committee and Women’s Jewelry Association. He has worked closely with JA and many state and regional jewelry associations as well as other retail organizations in a combined effort to develop programs designed to build membership.

JA said that Bonaparte will work to expand the association’s membership, strengthening the organization in terms of both influence and resources, while continuing its leadership role in public and industry affairs as an advocate for its members and the jewelry industry at large.

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Signet Jewelers Holiday Sales Up 7.1%, Same-Store Sales Up 3.3%

Kay Jewelers, one of the U.S. brands
owned by Signet.

Signet Jewelers Ltd., the largest specialty retail jeweler in the U.S. and U.K., said Tuesday that sales for the November-December holiday period rose 7.1 percent to $1.23 billion. Same store sales were up 3.3 percent for the nine-week period.

Strong sales in the U.S. overcame a decline in sales for the company’s U.K. stores. Consolidated e-commerce sales increased by 39 percent, comprised of a 49 percent increase in the U.S. and an 8 percent increase in the U.K. Holiday sales for 2012 did not quite reach the level of growth that the jeweler saw in 2011, which was 7.5 percent.

“We saw particularly strong performance in the weeks and days leading up to Christmas,” said Mike Barnes, Signet CEO. “Business trends continue to be encouraging in the U.S. and have improved in the U.K. after the holiday season.”

The Bermuda-based jewelry retailer owns and operates Kay Jewelers; Jared, the Galleria of Jewelry; and a number of regional brands in the U.S. and H.Samuel and Ernest Jones jewelers in the U.K.

The company’s U.S. division saw a year-over-year sales increase of 9.9 percent to just over $1 billion, compared to an increase of 9.2 percent in the comparable nine weeks. Same store sales for the period increased 4.7 percent led by both Kay and Jared, compared to an increase of 9.2 percent in the comparable nine weeks. The total sales figure for 2012 includes $37 million from the Chicago-based Ultra Stores retail chain, which Signet acquired in October.
 
“In the U.S. we experienced broad based strength across our merchandise offerings led by our initiatives in bridal, branded and exclusive merchandise, colored diamonds, fashion jewelry and watches,” Barnes said.

Holiday sales in the company’s U.K. division fell by 5 percent to $203.4 million, compared to an increase of 0.9 percent in the comparable nine weeks. Same store sales in the U.K. were down 2.6 percent compared to an increase of 1.8 percent in the comparable nine weeks.

“In the UK watches and branded jewelry were the strongest performers,” Barnes said.

In its outlook, Signet said diluted earnings per share for the fourth quarter are projected at $2.05 to $2.10. Diluted earnings per share for the 53 weeks ending Feb. 2, 2013, are projected at $4.28 to $4.33.

Capital spending for Fiscal 2013 is anticipated to be $138 million to $142 million reflecting current estimates of project timing. In addition to the Ultra Stores, Inc acquisition. Signet says it anticipates 48 new US-based stores for the year.

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Samuels Jewelers Holiday Comps Up 8.4%

Samuels Jewelers retail chain said same store jewelry sales for the nine-week holiday season were up 8.4 percent, driven by an 11.2 percent increase in December. The season kicked off with a record breaking Black Friday. 

The Austin, Texas-based jewelry retailer operates approximately 104 stores in 22 states primarily in the Southwestern U.S. It is owned by Gitanjali Group, the Mumbai, India-based international diamond and jewelry manufacturer and jewelry retailer. 

“Samuels' strong holiday season sales demonstrate that it has struck the right chord with USA customers yet again,” said Mehul Choksi, Gitanjali Group chairman and managing director. “Customers seeking added value were enchanted by the fresh bouquet of Italian jewelry brands like Giantti and Porrati introduced in stores. The new 97-facet ‘Brilliant Fire’ diamond also found popularity with customers.” 

He added, “With the US market showing signs of stabilizing, we are confident of this trend continuing through the upcoming Valentine season.” 

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Another Strong Year for Signet Jewelers

Signet Jewelers, the largest specialty retail jeweler in the U.S. and U.K., continues to benefit from strong retail sales in U.S., which more than offset weaker figures in the U.K.

The Bermuda-based company said Thursday that fourth quarter sales increased 11.8 percent, year-over-year, to $1.51 billion. Same store sales for the period ended Feb. 2, increased 3.5 percent compared to an increase of 6.9 percent in the prior fiscal year. E-commerce sales increased 46.9 percent to $63.9 million.

In its U.S. division sales for the fourth quarter increased 14.2 percent to $1.24 billion. Same store sales increased 4.9 percent compared to an increase of 8.3% in the fourth quarter Fiscal 2012. Sales increases were driven by broad based strength across most merchandise categories in both Kay and Jared retail chains and its acquisition of the Ultra Diamonds retail chain, the fifth largest in the U.S.

In its U.K. division total sales were up 1.8 percent to $268.4 million (fourth quarter Fiscal 2012: $263.7 million). Same store sales fell 1.9 percent compared to an increase of 1.7 percent in the fourth quarter Fiscal 2012. Sales performance was primarily attributed to lower store traffic and increased customer purchases of promotional merchandise, which impacted sales and gross margin.

In Fiscal 2013, Signet's total sales increased 6.2 percent to $3.98 billion. Same store sales were up 3.3 percent compared to an increase of 9 percent in Fiscal 2012. E-commerce sales increased 40.6 percent to $129.8 million.

In the US division total sales for the 2013 fiscal year increased 7.9 percent to $3.27 billion. Same store sales increased 4 percent for the year compared to an increase of 11.1 percent in Fiscal 2012. Sales increases were driven by broad based strength across most merchandise categories in both Kay and Jared, as well as the Ultra acquisition.

The number of merchandise transactions increased in Kay and Jared, the company said. Average merchandise transaction values were up in Kay stores due to changes in sales mix and down in Jared stores due primarily to the discontinuation of Rolex watches. E-commerce sales were $101.4 million compared to $68.5 million in Fiscal 2012, up $32.9 million or 48 percent.

In the U.K. division total sales fell 0.8 percent to $709.5 million. Same store sales increased 0.3 percent compared to an increase of 0.9 percent in Fiscal 2012. Sales performance was primarily attributed to lower traffic particularly in the fourth quarter.

In its guidance the company, which trade on the NYSE, said expectations are for same store sales in the first quarter to be up 5 to 7 percent.

“Signet had an excellent Fiscal 2013 with a 3.3% increase in same store sales and a 16.6 percent increase in earnings per share,” said Mike Barnes, Signet CEO. “The acquisition of Ultra, our share repurchase program and the increase in our quarterly dividend demonstrate our ability to capitalize on our excellent balance sheet to provide for our long-term growth and increase value for our shareholders.”

He added, “We are pleased with our progress quarter-to-date and expect to achieve our goals for the first quarter…. We will continue to advance our expansion goals as we integrate our recently acquired Ultra stores, execute on our multi-channel growth initiatives and expand our store base.”

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US Sales Remain Strong At Signet Jewelers While UK Sales Disappoint

Signet Jewelers, the largest specialty retail jeweler in the US and the UK, said Thursday that second-quarter year-over-year sales increased 3.1 percent to $880.2 million. Same store sales for the period increased 3.6 percent year-over-year while eCommerce sales grew 7 percent to $31.2 million.

This was offset by a 1.2 percent decline in net income to $67.4 million. During a conference call Thursday, Mike Barnes, Signet CEO, said the decline was primarily due to the costs associated with the acquisition of the Ultra outlet jewelry store chain and the conversion of many of them to Zale Outlet stores, and lower gross margins compared to other Signet holdings. Without Ultra, earnings per share were up 5.9 percent.

In the company’s US division, which now accounts for nearly 85 percent of total sales for the company, sales increased 5.6 percent to $741.1 million. Same store sales increased 4.9 percent for the period. Sales increases were driven by strength in bridal, colored diamonds and watches. Signet owns 1,449 jewelry retail stores that operate under the brand-names Kay, Jared, Kay Outlet stores, Ultra and stores and some regional brands.

Kay and Jared experienced increases in both transaction counts and average transaction value. Meanwhile, eCommerce sales increased 36 percent to $25.3 million.

In the UK division, total sales declined 8.5 percent to $139.1 million in the second quarter. Same store sales decreased 2.4 percent. The company said the sales decline was primarily due to a same store sales decrease of $3.4 million, the impact of closed stores of $5.6 million and currency fluctuation of $3.9 million. Signet owns 500 retail stores that operate under the H.Samuel and Ernest Jones names.

The company said that at Ernest Jones, the number of transactions increased driven primarily by strength in branded bridal and watches, excluding Rolex, and the average transaction value was lower, primarily due to the impact from Rolex being offered in fewer stores. In H.Samuel, the number of transactions declined, primarily due to store closures and lower traffic. This resulted in lower sales across many merchandise categories, partly offset by strength in branded bridal products. Sales in both businesses were impacted by lower bead transactions. UK eCommerce sales in the UK increased 5.4 percent to $5.9 million, which include 45 percent coming to the websites through mobile devices, Barnes said.

Barnes noted during the conference call that Signet is in the process of updating its websites and mobile presence to take advantage of the increased traffic.

Other second quarter highlights:

* Gross margin declined, falling to $309.7 million or 35.2 percent of sales, compared to $311.2 million or 36.4 percent of sales in the second quarter fiscal 2013. The includes the results for Ultra increased gross margin dollars by $5.7 million; however, it reduced the consolidated gross margin rate by 50 basis points and the US gross margin rate by 70 basis points. The Ultra gross margin is lower than the core US business due to lower Ultra store productivity and the impact of the Ultra integration.

* Gross margin dollars in the US increased by $1.3 million compared to second quarter of fiscal 2013, reflecting higher sales offset by a gross margin decrease of 180 basis points. The company said the lower gross margin was primarily attributed to a gross merchandise margin decrease by 50 basis points, attributed to Ultra; and store occupancy and operating costs deleveraged by 70 basis points, of which 40 basis points was due to Ultra. The remaining 30 basis point change was due to the increase of new store openings.

* The US net bad debt ratio increased to 4.9 percent of sales compared to 4.5 percent of sales in prior year second quarter. The increase in the ratio was primarily due to the growth in the outstanding receivable balance. In addition, the US division experienced a “slight decline in collection efficiency” and a change in the credit mix. In the UK, gross margin dollars decreased $2.8 million, primarily reflecting the impact of decreased sales and currency fluctuation offset by a gross margin rate increase of 40 basis points.
.
* Selling, general and administrative expenses increased 4.2 percent to $250.5 million. As a percentage of sales, SGA increased by 40 basis points to 28.5 percent. This includes the results for Ultra, which increased SGA by $13.5 million and increased the consolidated SGA rate by 70 basis points. The company said Ultra’s SGA is expected to decline as the final steps of the integration are completed.

* Operating income fell 4.9 percent to $105.5 million. Operating margin declined 100 basis points to 12 percent.

* The US division’s operating income including Ultra declined 4.9 percent to $111.5.

* Operating margin for the US division including Ultra was 15 percent, compared with 16.7 percent in fiscal 2013, down 170 basis points. Excluding Ultra, the US division’s operating income was $119.3 or 16.8 percent of sales, up 10 basis points.

In its guidance, the company said it expects same store sales to rise in the low-single digit for the third quarter.

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