Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein InternshipJamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.
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
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
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for CharityIn the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the HolidaysCo-owner Dan DeVries shared what it’s like moving into a space triple the size of its old store and how it feels to be a “real jeweler” now.
Brought to you by
De Beers Group Launches Holiday Campaign for Natural Diamonds‘Forever Present’ campaign revives the iconic A Diamond is Forever tagline and celebrates the diamond dream.
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into JewelryAlong with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.
Weekly QuizDec 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeDec 19, 2024
Alleged Jewelry Thieves Attempt Rowboat EscapeThe man and woman are accused of stealing jewelry from a shipping container then trying to flee by paddling a small boat out into a bay.
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’sThe nearly 17-carat stone made history for the color-change gem that, according to the auction house, is experiencing a “notable surge” in the market.
Brought to you by
Advocacy and Excellence: How Jewelers of America Is Committed to Elevating Our Industry For over a century, Jewelers of America has been the voice of the industry and valuable resource to jewelers across the country.
WatchesDec 18, 2024
Historic Titanic Pocket Watch Winds Its Way Back to Tiffany & Co. More than a century after survivors gifted a Tiffany timepiece to the captain of the ship that rescued them, the jeweler has reclaimed it.
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video CampaignThe videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to RetireFeldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry ExcellenceThe luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’sThe nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.
CrimeDec 17, 2024
‘Black Bin Crew’ Robbers Get 14-16 Years in Prison The three men, who got their nickname because they’d toss the jewelry they stole into black plastic bins, were arrested back in August.
TrendsDec 16, 2024
Marion Fasel’s New Book Delves Into the History of Engagement Rings“The History of Diamond Engagement Rings: A True Romance” is a 128-page small-format book containing more than 165 images.
WatchesDec 16, 2024
Take a Look Inside the New Rolex Boutique on Rodeo DriveGearys opened a 6,200-square-foot Rolex store with a design that pays homage to the brand’s connection to the ocean.
GradingDec 16, 2024
GCAL By Sarine Expands 8X to 2 More Fancy Shapes The diamond cut grade is now available for marquise- and pear-shaped diamonds.
SourcingDec 16, 2024
Diamonds Do Good Announces 2025 Award RecipientsDDG said the honorees’ business practices embody a commitment to positive social impact, industry innovation, and community empowerment.
TrendsDec 13, 2024
Selena Gomez Said ‘Forever Begins Now’ to Marquise Diamond Engagement RingEstimates on the size and value of the solitaire diamond, which is mounted on a diamond pavé-set yellow gold band, vary.
TrendsDec 13, 2024
Piece of the Week: Martin Katz’s Tanzanite Drops These half-moon tanzanite earrings totaling 25 carats are part of a special trunk show taking place this weekend in Dallas.
Recorded WebinarsDec 13, 2024
Watch: The Highs and Lows of 2024The National Jeweler editors recap the top news, the best jewels, and their favorite stories of the year.
AuctionsDec 12, 2024
Tom Brady’s Watches Top $4M at Sotheby’s AuctionThe highest-grossing lot of the sale was the retired QB’s Rolex Paul Newman Daytona “John Player Special.”
SourcingDec 12, 2024
Grizzly Emerald Auction Garners $22.4MRecent expansion initiatives at the Zambian emerald mine have shown strong production numbers, said Grizzly founder Abdoulaye Ndiaye.
MajorsDec 12, 2024
Mark Henry Appoints New Director of SalesCarrie Forman joins the brand to guide it into the next phase of growth with major and independent retailers in the U.S. and abroad.
SourcingDec 12, 2024
De Beers Announces 2024 ‘Shining Light’ Award WinnersThe competition awarded 12 designers, each from a country where De Beers recovers diamonds, with business support and tuition assistance.
CollectionsDec 12, 2024
The Jared Atelier x Vera Wang Collection Emphasizes EleganceThe high jewelry collection features 14 one-of-a-kind pieces, with serpent and ribbon motifs winding their way through the collection.
