Diamond miner and retailer Harry Winston Diamond Corp., recorded a 22 per cent increase in both its fourth quarter and annual sales.The Toronto-based company says one-time gains and a customer shift to international markets helped fourth quarter sales (ending Jan. 31) increase to $188.2 million from $154.3 million for the same period last year.
Additionally, a $22.3-million foreign exchange gain related to unrealized non-cash gain on future income taxes payable impacted fourth quarter net earnings. A future income tax recovery of $22.4 million and an after-tax gain of $8 million relating to an insurance settlement also affected results.
Annual sales results also saw a 22 per cent increase to $679.4 million from $558.8 million a year ago. Net earnings came in at $106.4 million for fiscal 2008 compared to $104.3 million the previous year.
A $43.4-million foreign exchange loss pertaining to an unrealized non-cash loss on future income taxes reduced net earnings for the year, compared to a net $8.8-million foreign exchange gain in 2007. This was due to a 17 per cent strengthening of the Canadian dollar over the U.S. greenback.
The company says it has seen a shift in its customer base. At one point, customers were based mainly in the United States, but now, they account for about a third of global sales, while Russia, China, the Middle East, and India make up the bulk of shoppers.
