EditorsMay 07, 2024
Q&A: Author Vikki Tobak on the ‘Ice-Cold’ ExhibitionTobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
SourcingJan 22, 2021
Alrosa Ends Difficult Year With Strong Q4
The miner’s sales were down for the full year, but it is not as bad as it could have been considering sales ground to a halt mid-year due to the pandemic.
Alrosa’s rough and polished diamond sales dropped 16 percent on the year but rose 33 percent in the fourth quarter due to recovering consumer demand in the second half of 2020. (Photo credit: Alrosa)
Moscow—Sales fell by double digits for Alrosa in 2020, but the company ended the year on an upswing it says has continued into 2021.
The diamond miner reported Thursday that revenue from rough and polished diamond sales totaled $2.8 billion in 2020, down 16 percent year-over-year. But fourth quarter sales rose 33 percent year-over-year to $1.22 billion.
In volume terms, Alrosa’s annual sales totaled 32 million carats, down 4 percent year-over-year but up more than double in the fourth quarter, as the recovery in consumer demand that started in the second half of the year in China and the United States accelerated.
“Many U.S. retailers launched their holiday offers early to ensure a more even distribution of demand and allow for social distancing,” the company said in the release announcing Q4 and full-year results.
“As a result, the Christmas holiday season in the U.S. kicked off with strong online sales as the pandemic pushed consumers to shop online. Another sustainable trend in the retail sector is the steady recovery of sales in mainland China, where travel restrictions make Chinese consumers spend more domestically.”
Jewelers interviewed by National Jeweler in the month of December said the same; consumers were shopping early to avoid the crowds.
And they were spending money that couldn’t be used for travel, dining out and other experiences on jewelry, particularly diamond jewelry.
RELATED CONTENT: Strong Start Has Jewelers Hopeful for the Holidays
In a Jan. 7 webinar hosted by National Jeweler, guests Edahn Golan, Peter Smith and Sherry Smith all commented on diamond jewelry’s strong performance in 2020, which they attributed to it being a low-risk choice in an uncertain time and the pandemic spurring proposals.
“When people feel stressed and anxious and you’ve got all of this uncertainty in your life, you’re going to make safe choices,” Peter Smith said. “Diamonds are a very safe choice. I’m waiting to see the first T-shirt that says, ‘I’ve got too many diamonds.’
“That just doesn’t happen. They just continue to be a safe choice.”
RELATED CONTENT: Watch—Our Webinar on 2021 Predictions
In addition to sales declining, Alrosa’s production also dropped in 2020, falling 23 percent in the fourth quarter to 7.1 million carats and declining 22 percent on the year to 30 million carats total.
Alrosa and the world’s other main diamond supplier, De Beers Group, dialed back production last year to save money as COVID-19 halted
Editors' Picks
Sponsored by
business worldwide. Some diamond mines closed entirely for a period while others operated at reduced capacity with skeleton crews.
Alrosa started the year with a production goal of 34 million carats but scaled back to 28-31 million carats about halfway through 2020, ultimately ending the year right in the middle of that range.
It also allowed customers additional flexibility—which the miner has extended into 2021—and implemented a “price-over-volume” strategy, which helped stabilize rough diamond prices during the crisis, all in the interest of the sustainability and stability of the diamond industry, Alrosa said.
In the early months of 2021, Alrosa said diamond cutters and polishers are increasing production to 100 percent capacity after having to cut back in 2020 due to COVID-19.
They anticipate stable orders in the first quarter of the year, as diamond dealers and retailers look to replenish inventories following the holiday season and, in China, ahead of the new year on Feb. 12.
Alrosa started the year with a production goal of 34 million carats but scaled back to 28-31 million carats about halfway through 2020, ultimately ending the year right in the middle of that range.
It also allowed customers additional flexibility—which the miner has extended into 2021—and implemented a “price-over-volume” strategy, which helped stabilize rough diamond prices during the crisis, all in the interest of the sustainability and stability of the diamond industry, Alrosa said.
In the early months of 2021, Alrosa said diamond cutters and polishers are increasing production to 100 percent capacity after having to cut back in 2020 due to COVID-19.
They anticipate stable orders in the first quarter of the year, as diamond dealers and retailers look to replenish inventories following the holiday season and, in China, ahead of the new year on Feb. 12.
More on Sourcing
The Latest
EditorsMay 07, 2024
10 On-Theme Looks from the 2024 Met GalaStars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
IndependentsMay 07, 2024
112-Year-Old New Orleans Business Popping Up in Aspen M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
MajorsMay 07, 2024
Richemont Acquires Italian Jeweler VhernierThe branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
Weekly QuizMay 02, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
CollectionsMay 07, 2024
These ‘Luminaries’ Are Set to Light Up CoutureThe six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
AuctionsMay 07, 2024
Sotheby’s to Auction Sylvester Stallone’s WatchesThe highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.
Brought to you by
Rio’s Reimagined Podcast: For the Love of JewelersMeet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
CollectionsMay 07, 2024
Phillip Gavriel Pays Tribute to Venice With New CollectionThe “Venetian Link” series modernizes the classic Veneziana box chain in its bracelets and necklaces.
Events & AwardsMay 07, 2024
JA Now Accepting Applications for New Bench Jeweler ScholarshipThe Seymour & Evelyn Holtzman Bench Scholarship will provide tuition assistance to two low-income students.
Policies & IssuesMay 06, 2024
Rolex Files Objection to Hallmark’s New Trademark ApplicationThe Swiss watchmaker said the company’s plans to use a new version of the Hallmark crown on jewelry would confuse consumers.
EditorsMay 06, 2024
Q&A: 8 Questions With Anglo American’s Benny Oeyen The executive talked about the importance of self-purchasers and how fuel cell electric vehicles are going to fuel demand for platinum.
MajorsMay 06, 2024
Malabar Gold & Diamonds Opens 4th U.S. ShowroomThe Indian jeweler’s new store in Naperville, Illinois marks its 350th location, part of its ongoing global expansion plans.
Events & AwardsMay 06, 2024
Ben Bridge Jeweler Accepting Applications for Lonia Tate ScholarshipIt will award a graduating high school student with about $10,000 toward a GIA diploma and an internship with the Seattle-based jeweler.
CrimeMay 03, 2024
Second Suspect Arrested in Murder of Colorado JewelerWheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
CollectionsMay 03, 2024
A Sneak Peek Into PGI’s Couture Platinum Spotlight ProgramPGI partnered with four new and seven returning designers for its annual platinum capsule collection.
MajorsMay 03, 2024
Kristie Nicolosi Joins WJA Board AgainNicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.
CollectionsMay 03, 2024
Piece of the Week: A “Bit of LUV” for the DerbyKarina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.
CrimeMay 02, 2024
4 Indicted in Burglary Ring Targeting Indian, South Asian FamiliesThe men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
CollectionsMay 02, 2024
Foundrae Launches ‘Horizon’ Collection“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
FinancialsMay 02, 2024
Pandora Raises Guidance After Strong Q1The jeweler credits its recent “Be Love” campaign and ongoing brand revamp for its 17 percent jump in sales.
IndependentsMay 02, 2024
Oklahoma Jeweler Glenn Lewis Dies at 68The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.
AuctionsMay 02, 2024
Vintage Baume & Mercier With Ties to Elvis Sells for $7K Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”
SurveysMay 01, 2024
Consumer Confidence Falls in AprilConcerns about rising prices, politics, and global conflicts continue to dampen consumer outlook.
TrendsMay 01, 2024
Amanda’s Style File: All Eyes on EmeraldsMay’s birthstone is beloved for its rich green hue and its versatility.
CrimeMay 01, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
