Harry Winston Diamond (TSX: T.HW, Stock Forum) late Wednesday said its second-quarter profit dropped 52% to $4.8 million, or six cents a share, from $10 million, or 12 cents a share, a year earlier.
The diamond miner and luxury jeweler added that total sales in the quarter decreased more than 20% to $176.9 million on falling diamond prices, which were weaker as a result of a buildup of inventory at cutting and polishing centres as well as reflecting current global economic conditions.
"This quarter has seen transaction numbers and margins grow in our luxury goods segment even as we have withheld rough diamonds, from a soft diamond market, rather than sell at depressed prices," said Harry Winston’s Chairman and CEO Robert Gannicott in a statement.
Harry Winston said production plans for the Diavik mine, which it owns with Rio Tinto, remains at about eight million carats this year.