CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.
SourcingFeb 21, 2017
De Beers Sees Sales, Profits Jump in 2016
The diamond miner and marketer said U.S. diamond jewelry demand continued to grow, boosted in part by fourth quarter marketing campaigns.
Rough diamond sales increased 37 percent in 2016, reaching $5.6 billion as demand for polished diamonds continued to grow in the United States. (Photo courtesy of De Beers)
London--De Beers’ sales and profits jumped in 2016 due to stronger rough diamond demand, cost-cutting measures and favorable exchange rates, parent company Anglo American reported Tuesday.
De Beers’ total revenue increased 30 percent from $4.7 to $6.1 billion on the back of a 37 percent increase in rough diamond sales, which totaled $5.6 billion.
Consolidated rough diamond sales volumes rose 50 percent to 30 million carats but the average realized price per carat fell from $207 to $187 due to the drop in rough prices.
Underlying EBITDA (earnings before interest, taxes, depreciation and amortization) rose 42 percent to $1.4 million.
On a market-by-market basis, there was “sustained” growth in demand for diamond jewelry in the United States, which remains De Beers’ No. 1 market globally.
Additional generic diamond marketing in the fourth quarter had a “positive impact” on demand, De Beers’ year-end results stated. There were two new diamond-centric campaigns targeting consumers at the end of last year, Forevermark’s “Ever Us” and the “Real is Rare” campaign from the Diamond Producers Association.
Rough diamond production, meanwhile, was down 5 percent compared with the previous year to 27.3 million carats due to De Beers’ decision to scale back mining operations following a weak 2015.
Botswana produced the vast majority of De Beers’ diamonds in 2016, accounting for 20.5 million carats, or 75 percent of total production.
De Beers’ total revenue increased 30 percent from $4.7 to $6.1 billion on the back of a 37 percent increase in rough diamond sales, which totaled $5.6 billion.
Consolidated rough diamond sales volumes rose 50 percent to 30 million carats but the average realized price per carat fell from $207 to $187 due to the drop in rough prices.
Underlying EBITDA (earnings before interest, taxes, depreciation and amortization) rose 42 percent to $1.4 million.
On a market-by-market basis, there was “sustained” growth in demand for diamond jewelry in the United States, which remains De Beers’ No. 1 market globally.
Additional generic diamond marketing in the fourth quarter had a “positive impact” on demand, De Beers’ year-end results stated. There were two new diamond-centric campaigns targeting consumers at the end of last year, Forevermark’s “Ever Us” and the “Real is Rare” campaign from the Diamond Producers Association.
Rough diamond production, meanwhile, was down 5 percent compared with the previous year to 27.3 million carats due to De Beers’ decision to scale back mining operations following a weak 2015.
Botswana produced the vast majority of De Beers’ diamonds in 2016, accounting for 20.5 million carats, or 75 percent of total production.
De Beers’ second largest producer was its mines in South Africa at 4.2 million carats followed by Namibia (1.6 million) and Canada (1 million).
Production was flat year-over-year in Botswana while declining in South Africa, Namibia and Canada.
In South Africa, the drop was due mainly to the sale of the Kimberley Mines, which was completed in January 2016.
The production decline in Canada was attributed to the closure of the Snap Lake Mine. De Beers said it began flooding the underground portion of the mine in January 2017 after an attempt to find a buyer for Snap Lake failed.
De Beers Diamond Jewellers, the chain of jewelry stores De Beers operates in partnership with LVMH, had 34 stores in 17 markets worldwide as of the close of 2016. Also last year, the company moved its New York flagship store to a new location on Madison Avenue to complete “the repositioning of the brand in the U.S.”
In 2017, De Beers predicts that production will increase to 31-33 million carats, with rough diamond demand expected to normalize and consumer demand worldwide expected to remain relatively stable.
However, the extent of growth in demand for diamonds will be dependent upon a number of macro-economic factors including the new administration in the U.S. and the strength of the U.S. dollar, De Beers said.
More on Sourcing
The Latest
FinancialsApr 25, 2025
Kering’s Jewelry Brands Persevere as Q1 Sales Sink 14%Boucheron and Pomellato performed well in an otherwise bleak quarter for Kering amid struggles at Gucci.
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ EarringsDesigner Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs Six new retail businesses were selected for the 2025 program, which began in January.
Supplier BulletinApr 24, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
Weekly QuizApr 24, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. ExpansionSimon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99 A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.
Brought to you by
Protect Your Customers and Your BusinessThe risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to NoncomplianceThe company failed to file its quarterly reports in a timely manner.
TrendsApr 24, 2025
Amanda’s Style File: So CharmingCharms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in ItalyLocated in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ AwardPaola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to AuctionA platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen BrownThe basketball stars wear men’s jewelry from the “Curb Chain” collection.
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine JewelryThe Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry CollectionThe 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of MouthLilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth OfficerGCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow IndependentThe Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.
IndependentsApr 21, 2025
New York Jeweler to Close After 111 YearsVan Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise StrategyIndustry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.
Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host ConventionThe two organizations will hold the educational event together this fall in Mississippi.
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated StoreThe jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day CampaignThe “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.
