Gucci’s Latin Grammy Digital Timepiece and Leather Bracelet

Gucci Timepieces and Jewelry has partnered with The Latin Recording Academy, known for the Latin Grammy Awards, and as part of this relationship, the luxury brand created a special edition Latin Grammy watch and jewelry collection, designed by Gucci creative director, Frida Giannini.

The brand created a larger and bolder version of the I-Gucci (top picture), its first-ever digital timepiece. With a flick, the watch face changes from a two-time zone dial in large digits to a streamlined version with two digital hands revealing local time, in multiple Latin American locations.

The I-Gucci was first launched last year for the Grammy Awards.

The large, double-layout digital display has a tag celebrating the Latin Grammy partnership. The PVD stainless-steel case is complemented by a wide, black rubber strap featuring a black Guccissima insertion. The special edition timepiece contains a chronometer, countdown and other options. The case back also features the Latin Grammy Awards special edition label.

The Latin Grammy collection also includes a Guccissima leather bracelet in black (pictured above). The gramophone symbol is etched on the rhodium plated sterling silver clasp along with the Gucci logo.

Sales from the Latin Grammy jewelry and watch collection will benefit the Latin Recording Academy and its initiatives to support young and emerging artists on the international music scene and strengthen global awareness of the importance of the culture.

The Latin Grammys will be held Thursday and broadcasted over the Univision Network starting at 8 p.m.

Graff Plans Asian Expansion

The Graff Diamonds store on New Bond Street, London.

Graff Diamonds Ltd. is planning to file an initial public offering, most likely in Hong Kong, in order to fund its expansion into Asia, according to several reports.

The London-based company, owned by Laurence Graff, is using the IPO to raise $1 billion and increase the value of the company to $5 billion, the Financial Times (subscription required) and other publications report. Graff has reportedly hired financial consultant, Rothschild Group, to advise him on the IPO, which is expected sometime next year.

The company, known for its luxury diamond jewelry, already has a network of more than 30 jewelry stores throughout the world. Graff would use the money raised in the IPO to fund a greater expansion into Asia, by far the largest growth market for luxury diamond jewelry, according to reports. In addition, the company hopes to use the funding to expand production of high-end pieces and increase its inventory of rare gemstones.

Hong Kong isn’t the only listing location being considered, but Asia is the company’s focus, according to reports.

Blue Nile CEO Resigns; Q3 Sales Up 11%

Diane Irvine

Diane Irvine, Blue Nile CEO, president and director, who has been with the diamond and fine jewelry online retailer since the company was founded in 1999, has resigned, effective November 11. The announcement came just minutes before the Seattle-based company reported that third quarter sales increased 11.2 percent to $75 million. Operating income for the quarter totaled $2.9 million, representing an operating margin of 3.8 percent of net sales.

Vijay Talwar, senior VP and general manager of the company’s international business, has been appointed interim CEO. During the transition period, chairman Mark Vadon, who founded the company, said in a conference call that he will take an active role in the leadership of the company, working closely with Talwar. With the support of the Board, Vadon said he will lead the search for a permanent CEO.

“Diane has been with Blue Nile since its formation and we wish her well in her future endeavors,” Vadon said. “Diane has worked with me on the business since 1999. She has been a tremendous business partner, making countless contributions in her 12 years at Blue Nile. During Diane's tenure as CFO and CEO, the company has grown sales from $14 million to over $300 million and has become one of the world's largest fine jewelers.”

Talwar joined Blue Nile in August 2010. From November 2010 to August 2011, Talwar also served as Blue Nile's CFO. Prior to Blue Nile, he served as CEO of the William J. Clinton Foundation in India, where he provided strategic, financial and operational leadership across health care and sustainability programs in India and South Asia. Before joining the Clinton Foundation, he was at Nike, where he held a number of executive leadership positions, including COO for Nike CEMEA (Central Europe, Middle East and Africa) based in Amsterdam.

“Serving both as the head of international operations and as the company's Chief Financial Officer, Vijay has developed a deep understanding of the Blue Nile business,” Vadon said. “Further, his strong branding experience makes him ideally suited to lead the company's daily operations during this transition period.”

Blue Nile Highlights for the third quarter, ended October 3, include:

* International sales grew 54.8 percent in the quarter to $14.4 million, a record level for any third quarter in Blue Nile's history. Excluding the impact from changes in foreign exchange rates, international sales increased 46.2 percent.

* Gross profit for the quarter totaled $14.8 million, an increase of 1.4 percent from the prior year. As a percentage of net sales, gross profit was 19.8 percent compared to 21.7 percent for the third quarter of 2010.

* Selling, general and administrative expenses for the quarter were $12 million, compared to $10.4 million in the third quarter of 2010. Selling, general and administrative expenses included stock-based compensation expense of $1.6 million in the third quarter.

* At the end of the third quarter, cash and cash equivalents totaled $40.2 million.

* During the third quarter, Blue Nile repurchased 880,300 shares of its common stock for $30.9 million.

“Our record third quarter sales exceeded the high end of our guidance and was driven by solid growth in our engagement and non-engagement businesses,” Talwar said. “We also continue to experience exceptional growth in our international business, validating the value proposition we have for our consumers abroad. Overall, engagement sales growth at the high-end continues to perform very well, showcasing the depth of selection we have in the luxury category. Key to our strategy, we will continue to aggressively invest in our brand and business through marketing programs and additional merchandising assortments. “During the quarter, we repurchased $30.9 million of stock, underscoring the confidence we have in the long-term potential of our business.”

Hublot and Ferrari Become Partners

Jean-Claude Biver, CEO of Hublot (left), and Luca Cordero di Montezemolo, president of Ferrari S.p.A, seal the deal at the Mugello International Circuit. Photo credit: Raphael Faux.

Luxury Swiss watch brand Hublot says it has entered into a “comprehensive agreement” with the Italian sports car manufacturer, Ferrari, merging the brand images and the commercial activities of both companies.

The two companies say this collaboration will be more that the creation of watch collections, operating a license, or a sponsorship agreement. It’s described in a joint statement as a “genuine exchange between the two brands, a pooling of resources and information.”

Under the arrangement, Hublot becomes the exclusive watchmaking partner in the full range of Ferrari’s activities. This includes the “Official Watch” of Ferrari, “Official Timekeeper” of Ferrari, “Official Timekeeper” of Scuderia Ferrari, “Official Watch” of Scuderia Ferrari, “Official Timekeeper” of the Ferrari Challenge, and partners in Ferrari special events.

Jean-Claude Biver flanked by members of the Ferrari racing team. Photo credit: Raphael Faux

The partnership was announced November 5 during the Finali Mondiali Ferrari race at the Mugello International Circuit—the world finals event that traditionally marks the end of the Prancing Stallion's sports season. The new partnership will then head to the emerging markets of China and the Middle East. Ferrari is a leading luxury brands in China and Hublot is establishing itself in the country with 3 boutiques currently and 12 openings planned by the end of 2012.

“Exclusivity, technology, passion, style: Hublot and Ferrari share many core values and this new partnership between two such highly prestigious brands is an important milestone for both,” said Luca Cordero di Montezemolo, president of Ferrari S.p.A.

“This collaboration, rich in a host of synergies, gives Hublot a massive boost along the road,” added Jean-Claude Biver, CEO of Hublot.

Hermès Q3 Sales Up 15.8% Led by Watch and Jewelry Sales

The cream rises to the top as the best luxury goods brands continue to report robust sales in a difficult economic climate.

Hermès reports that revenue in the third quarter increased 15.8 percent, year-over-year, to 683.2 million euros. Revenue rose by 18.2 percent at constant exchange rates (stripping out the effects exchange rate changes). Sales growth for the Group's own stores was up 19.1 percent at constant exchange rates for the period, despite of a high comparison basis.

The 174-year-old Parisian brand said watch sales rose 22.4 percent (24.9 percent at constant exchange rates) to 37.5 million euros. Under the ready-to-wear & fashion accessories category, which includes jewelry, sales rose 28.9 percent (32.4 percent at constant exchange rates) to 148.1 million euros for the period, ended September 30.

Sales in other product categories are as follows:

* Silk & Textiles, up 21 percent (24.1 percent at constant-exchange rates) to 76 million euros.

* Leathergoods & Saddlery, up 8 percent (10.3 percent at constant-exchange rates) to 319.5 million euros.

* Other Hermes Sectors, up 29.9 percent (32.2 percent at constant-exchange rates) to 25.6 million euros.

* Perfumes, up 11.2 percent (11.6 percent at constant-exchange rates) to 42.7 million euros.

* Tableware, up 15 percent (16.8 percent at constant-exchange rates) to 10.9 million euros.

* Other products (which include John Lobb shoes as well as production activities realized for third parties, such as textile printing, perfumes, tanning), up 22.5 percent (23.3 percent in constant exchange rates) to 22.9 million.

Sales among geographical regions are as follows:

* Americas rose 12.9 percent (21.8 percent at constant exchange rates) to 106.6 million euros.

* France rose 5.4 percent to 111.8 million euros.

* The rest of Europe rose 21.3 percent (20.2 percent at constant exchange rates) to 138.1 million euros.

* Japan rose 4.3 percent (3.2 percent at constant exchange rates) to 115.8 million euros.

* The rest of the Asian Pacific rose 28.9 percent (33.9 percent at constant exchange rates) to 201.9 million euros.

Because of its strong third-quarter showing the company increased its outlook for the year, saying it expects sales growth to be 15 to 16 percent at constant exchange rates.

“Meeting this target will be highly contingent on the business sectors' ability to meet stepped-up demand ahead of the year-end holiday season,” the company said.

Eye Catching Jewelry from the 2012 AGTA Spectrum Awards

A carved jade fish accented with fire opals by Manya & Roumen. It tied for first place among editors who attended the Spectrum Awards editor's event.

There’s been a lot of talk about the winners of the AGTA Spectrum Awards, which were named Oct. 24. And all of it is well deserved. However, there were hundreds of other creative, innovative and otherwise beautiful pieces on display during the media review of the entries on the same day. Here are just a few that caught my eye:

Dagger Brooch with diaspore (17.63 ctw.) accented with rubies (0.58 ctw.) and diamonds (1.73 ctw.) set in 18k yellow gold.

An 18k yellow gold and black rhodium “Sleeping Raven” ring featuring round blue sapphires (4.227 ctw.).

“Guardian of the Deep” pendant made with 19k white gold showcasing an octopus with a silver keshi pearl on round rainbow drusy quartz accented with 1-ct. spinel and multicolored diamonds.

An 18k black and white gold “Medusa” bracelet featuring tsavorite Gamets (3.98 ctw.) accented with black diamonds (4.43 ctw.) and white diamonds (1.10 ctw.) by Yehouda Saketkhou of Yael Designs.

Lotus bracelet with diaspore (30.48 ctw.), pink sapphires (5.62 ctw.) and diamonds (6.94 ctw.) set in yellow gold by Erica Courtney.

Top: 18k green gold ring with 13-ct. green tourmaline accented with diamonds by Lori Auster. Bottom: 18k yellow gold bracelet with watermelon tourmalines (97.01 ctw.) accented with diamonds (2.98 ctw.) by Puja Bordia.

A 14k yellow gold pendant with a 126-ct. citrine accented with more citrines and and faceted Mexican fire opals by Jeanne Cassanova.

Art Deco and 18k yellow gold necklace featuring two triangular cabochon jade pieces (4.08 ctw.), nine pear-shaped rubies, custom-cut onyx, round tsavorite garnets and round diamonds (1.38 ctw.) by Ricardo basta.

An 18k white gold “Pacifier” ring with a 15.5 mm Tahitian cultured pearl accented with tsavorite garnets (2.50 ctw.) and a 0.16 pear-cut diamond.

An 18k white gold brooch featuring an 80-ct. carved aquamarine accented with diamonds (1.17 ctw.) by Naomi Sarna.

A 22k yellow gold and oxidized silver brooch featuring freshwater pearls, drusy quartz and diamonds (0.06 ctw.) by Jill Hurant.

Sterling silver and 18k yellow gold bangle with multicolored gemstones (8.30 ctw.) by Samuel Behnam.

A 14k yellow and rose gold ring with a 12.75-ct. round rubelite tourmaline accented with tsavorite garnets by Karen Sam.

Anglo American Buys 40% Stake in De Beers Group for $5.1 Billion

The Oppenheimer family, which has owned the the De Beers Group  for more than 80 years, announced Friday that it will sell its remaining stake in the company to Anglo American plc for $5.1 billion in cash.

The move will boost Anglo American’s current 45 percent stake in De Beers to 85 percent. Nicky Oppenheimer will remain as chairman of De Beers and the recently hired CEO, Philippe Mellier, will remain in his position, the London-based mining company said.

Anglo American has entered into an agreement with CHL and Centhold International Limited (“CIL”), together representing the Oppenheimer family interests, to acquire their 40 percent interest in DB Investments and De Beers SA, the two companies said in a joint statement.

Under the terms of the existing shareholders’ agreement between Anglo American, CHL and the Government of the Republic of Botswana, the GRB has pre-emption rights in respect of the CHL Group’s interest in De Beers, enabling it to participate in the transaction and to increase its interest in De Beers, on a pro rata basis, to up to 25 percent. In the event that the GRB exercises its preemption rights in full, Anglo American, under the proposed transaction, would acquire an incremental 30 percent interest in De Beers, taking its total interest to 75 percent, and the consideration payable by Anglo American to the CHL Group would be reduced proportionately.

Anglo American had been the largest shareholder in De Beers since it became a private company in 2001 and as a longstanding shareholder in De Beers prior to that.

“De Beers’ geographically diverse portfolio comprises large scale, low cost mining assets with proven distribution, sales and marketing capabilities and further potential from its leading pipeline of greenfield and brownfield projects and an expanding consumer-facing footprint,” Anglo American said in the statement.

“Today’s announcement marks our commitment to an industry with highly attractive long term supply and demand fundamentals,” Cynthia Carroll, chief executive of Anglo American, said in the statement. “Underpinned by the security of supply offered by a new 10-year sales agreement with our partner, the Government of the Republic of Botswana, this forms a compelling proposition.… I believe that the benefits brought by Anglo American’s scale, technical, operational and exploration expertise and financial resources, combined with the unquestionable leadership of De Beers’ business and iconic brand will enable De Beers to enhance its position across the diamond pipeline and capture the potential presented by a rapidly evolving diamond market.”

Nicky Oppenheimer, De Beers chairman representing the Oppenheimer family interests, said: “This has been a momentous and difficult decision as my family has been in the diamond industry for more than 100 years and part of De Beers for over 80 years. After careful and deliberate consideration of the offer, and what is in the best interests of the family, we unanimously agreed to accept Anglo American’s offer. Anglo American is the natural home for our stake as they have been major shareholders in De Beers since 1926 and have a deep knowledge of the diamond business.”

The Minister of Minerals, Energy, and Water Resources, Dr. Ponatshego H Kedikilwe, on behalf of the Republic of Botswana said: “The diamond industry is a major contributor to our economy in Botswana. We are grateful to the Oppenheimer family for their vision and contribution to the diamond industry and to Botswana and we will proudly take forward that legacy with Anglo American. We look forward to building on the excellent relationship we have with Anglo American, both through our ownership of De Beers and through the Debswana joint venture.”

The transaction is expected to be accretive to underlying earnings before depreciation and amortization on fair value adjustments in the year of acquisition, Anglo American said.