July 2025
- Avi Krawitz
- Aug 3
- 8 min read
Updated: Aug 17
Tariff Talk
The US will impose a 25% tariff on imports from India starting August 1, President Trump announced on Truth Social. The move could disrupt the diamond and jewelry trade, as India is a key supplier of polished stones and finished pieces to the US market.
The US and EU have agreed on a framework to set a 15% baseline tariff on European imports to the US, European Commission President Ursula von der Leyen said. They aim to finalize the deal before the August 1 deadline, when current 10% tariffs will be replaced by higher reciprocal rates. Without a deal, EU goods could face a 30% tariff. Other major diamond hubs like India and Botswana still lack agreements and face tariffs of 20–25% and 37%, respectively.
Luxury Earnings
Richemont reported a 7% year-on-year sales increase to €3.91 billion ($4.55 billion) for its jewelry maisons in the quarter ending March 31. Group sales rose 3% to €5.41 billion ($6.29 billion), driven by strong growth in Europe (+11%), the Americas (+10%), and the Middle East & Africa (+11%), which offset declines in Japan (-13%) and Asia Pacific (-4%).
LVMH’s watches and jewelry revenue slipped 1% year-on-year to EUR 5.09 billion ($5.98 billion) in the first half of 2025, while profit from recurring operations dropped 13% to EUR 762 million ($895 million). The decline was driven by renovation investments at Tiffany & Co. and increased marketing spend at brands like Bulgari.
Kering Group reported first-half revenue growth at its jewelry houses, driven by strong momentum at Qeelin and modest gains at Pomellato and Dodo. Boucheron held steady and expanded in the U.S. Still, the “other houses” division saw revenue drop 15% to EUR 1.46 billion ($1.67 billion), posting a EUR 29 million ($33.2 million) operating loss versus a EUR 44 million ($50.3 million) profit last year. Watches and jewelry made up 32% of the division, with estimated sales of €467 million.
Swatch Group’s net sales dropped 11% year on year to CHF 3.06 billion ($3.82 billion) in the first half, hit by weak consumer demand in China. Net income plunged 88% to CHF 17 million ($21.2 million). The company reported double-digit growth in North America, India, Turkey, the Middle East, and Australia, and noted continued good performance at its Harry Winston jewelry segment.
Retail Results
Birks Group reported a 4% drop in sales to $177.5 million for the fiscal year ended March 29, citing weaker branded jewelry sales following the exit of a jewelry brand from two locations. The company’s net loss widened to $12.8 million, up from $4.6 million the previous year.
Birks Group has obtained a $13.5 million loan from SLR Credit Solutions to support its acquisition of jewelry stores across Canada and to bolster working capital. The loan is due in full by December 24, 2026. In addition, the retail jewelry chain received a $3.5 million loan from major shareholder Mangrove Holding to further support working capital needs.
Chow Tai Fook reported a 1.9% drop in retail sales for the fiscal quarter ending June 30. Sales in Mainland China fell 3.3%, with same-store sales and gem-set, platinum, and K-gold jewelry all down by similar margins. In contrast, Hong Kong-Macau sales rose 7.8%, with same-store sales of gem-set jewelry up 3.3%.
Luk Fook reported a 14% year-on-year rise in group retail sales for the quarter ending June 30, with same-store sales up 5%. The growth was fueled by a 73% jump in demand for fixed price gold, while same-store diamond sales fell 17%. Revenue rose 14% in mainland China and 9% in Hong Kong-Macau.
Tse Sui Luen Jewellery (TSL) reported a 35% year-on-year sales decline to HKD 1.71 billion ($218 million) for the fiscal year ended March 31, 2025. Net loss narrowed to HKD 197.8 million ($25.2 million) from HKD 374.3 million ($47.7 million) the previous year. The company cited weak demand for natural diamond jewelry and lower 24K gold sales due to surging gold prices.
Indian jewelry conglomerate Titan Company reported a 13% year-on-year rise in group revenue from operations to INR 122.23 billion ($1.42 billion) for the fiscal first quarter ended June 30, 2025, despite subdued consumer demand due to high gold prices. Net profit fell 5% to INR 7.15 billion ($83.5 million), as expenses rose by 13% and due to a slightly higher tax charge. Revenue from Titan’s jewelry division grew 10% to INR 118.08 billion ($1.38 billion), while segment operating profit rose 8% to INR 11.02 billion ($12.9 million).
Watches of Switzerland reported a 7% increase in group revenue to GBP 1.65 billion ($2.25 billion) for the fiscal year ended April 27, 2025. Growth was driven by its luxury jewelry segment, where revenue more than doubled following the acquisition of Roberto Coin. Luxury branded jewelry saw double-digit growth overall. Sales rose 14% in the US and 2% in the UK and Europe. Operating profit declined 5% to GBP 114 million ($156 million).
Mergers & Acquisitions
Titan Company agreed to acquire a 67% stake in Middle Eastern jeweler Damas for AED 1.038 billion ($283 million), aiming to expand across six Gulf countries where Damas runs 146 stores. Titan also secured the option and voting rights to acquire the remaining 33% held by Mannai Corporation after December 31, 2029.
Birks Group has acquired European Boutique, a Toronto-based luxury watch and jewelry retailer, for $9 million. The acquisition includes four physical stores and an e-commerce platform serving customers across Canada. As part of the transaction, Birks has also entered into a licensing agreement to operate the Canadian brand Diamonds Direct.
Miner Sales Decline
De Beers reported an underlying loss of $245 million in the first half of 2025, reversing a $73 million profit a year earlier, parent company Anglo American said. Anglo’s EBITDA dropped 20%, driven largely by the lack of contribution from the diamond business. De Beers’ revenue fell 13% to $1.95 billion, with rough diamond sales down 13% to $1.71 billion and other sales — mainly from its Element Six unit — down 17% to an estimated $247 million. Trading conditions remain subdued amid ongoing tariff-related uncertainty, the companies noted.
Rio Tinto's diamond revenue rose 9% year-on-year to $162 million in the first half of 2025, driven by a 51% production surge at its Diavik mine to 2.2 million carats. EBITDA losses narrowed to $55 million from $63 million a year earlier.
Mountain Province Diamonds reported a 36% year-on-year drop in second-quarter sales to $26.6 million. Sales volume fell 26% to 411,114 carats, while the average price declined 12% to $65 per carat. Production at the Gahcho Kué mine in Canada — 49% owned by Mountain Province and 51% by De Beers — fell 46% to 708,072 carats during the quarter.
Gem Diamonds’ rough sales from its Letšeng mine fell 43% year-on-year to $44.7 million in the first half, with average prices down 26% to $1,008 per carat and volumes sliding 22% to 44,360 carats. The company is scaling down operations at the site, potentially cutting around 250 jobs amid sustained market weakness.
Lipari Mining reported a 32% year-on-year rise in rough diamond sales from its Braúna mine in Brazil, reaching $4.6 million in the second quarter. The average price also rose 32% to $218 per carat. The company noted stronger prices for rough diamonds above 3 carats and increased trading in smaller stones. Production totaled 23,021 carats for the quarter.
Production Squeeze
De Beers rough diamond production dropped 36% year-on-year in the second quarter to 4.2 million carats, its lowest output since the pandemic. Sales volume dipped 3% to 7.6 million carats, but rough diamond sales rose to $1.19 billion, Anglo American reported. Despite a 13% drop in its price index, the average price per carat jumped 23% to $174, suggesting a shift toward selling higher-quality stones.
Rio Tinto’s diamond production from the Diavik mine in Canada surged 76% year on year to 1.24 million carats in the second quarter. That marked a rebound from a low base after a temporary suspension at Diavik last year following a fatal plane crash. First-half output rose 51% to 2.18 million carats.
Mining Moves
Alrosa has launched production at the Karpinsky-2 kimberlite, the third of six pipes at its M.V. Lomonosov deposit. The company began testing the pipe in late 2018 to assess its economic potential and started preparing for production at the start of 2025. Total reserves at the Lomonosov site exceed 40 million tons of diamond-bearing ore, according to Alrosa.
Alrosa said it has achieved carbon neutrality across its diamond mining operations, as certified by TÜV Austria. Three years of research confirmed that kimberlite pipes at its Russian deposits absorb around 1 million tons of CO₂ annually — equivalent to the carbon capture of 400,000 hectares of forest. The process locks carbon permanently, with no risk of re-emission, contributing to a verified negative footprint of –0.71 kg CO₂-eq per carat in 2024, ALROSA CEO Pavel Marinychev announced at the XXVIII St. Petersburg International Economic Forum.
Lucapa Diamond Company has furloughed 400 workers at its Mothae mine in Lesotho, according to the Independent Democratic Union of Lesotho, which condemned the move as a violation of labor laws. The temporary layoffs began in June and were attributed to a slowdown in global diamond markets, the union said.
Burgundy Diamond Mines has scaled back operations at its Ekati mine in Canada due to ongoing weak market conditions. The company has suspended open-pit mining at the Point Lake kimberlite pipe, leading to layoffs and a cut in contractor numbers. It will now focus on processing higher-margin ore from the Misery underground site.
Trade Indicators
Belgium’s polished diamond exports fell 34% year-on-year to $370.5 million in June, while imports dropped 45% to $421.2 million, according to the Antwerp World Diamond Centre (AWDC). Rough imports declined 30% to $266 million, and rough exports slipped 11% to $296.1 million. In the first half of 2025, polished exports fell 30% to $3.14 billion, with shipments to the U.S. down 50% and to Hong Kong by 32%.
The market for fancy color diamonds is showing early signs of stabilizing, according to the Fancy Color Research Foundation (FCRF). Its index slipped 0.5% in the second quarter, partly due to the typical seasonal lull, the FCRF explained. Vivid pink and blue diamonds showed notable price recoveries.
The number of jewelers operating in the US fell 3.1% year over year to 22,218 in the second quarter, according to the Jewelers Board of Trade (JBT). The total includes 16,873 retailers, 3,241 wholesalers, and 2,104 manufacturers. During the period, 143 businesses closed and 97 launched.
Sales of jewelry, watches, clocks, and valuable gifts in Hong Kong declined 3.2% year-on-year in May 2025, according to the Census and Statistics Department. Overall retail sales fell 2.4% during the month, as the sector continues to adjust to evolving consumer spending habits, a government spokesperson said.
Swiss watch exports fell 6% year on year to CHF 2.15 billion ($2.68 billion) in June, according to the Federation of the Swiss Watch Industry. The US remained the top market despite an 18% drop to CHF 310.3 million ($386.8 million), while exports to China, the second-largest market, rose 6% to CHF 172.8 million ($215.4 million). Total exports were flat for the first half of the year.
Synthetics Debate
The International Gemological Institute (IGI) reaffirmed its use of the traditional 4Cs to grade lab-grown diamonds, contrasting with the Gemological Institute of America (GIA), which dropped color and clarity grading for synthetics due to their narrow quality range. IGI argued that growing consumer demand for lab-grown diamonds warrants full transparency.
The French government is standing by the term “synthetic” to describe lab-grown diamonds, despite pressure to drop it. Citing a 2022 public consultation, officials said most industry and consumer stakeholders supported keeping the term for the sake of clarity and consistency. The decision responds to criticism from politician Olivia Grégoire, who argued that “synthetic” is misleading and carries a stigma—especially in the context of luxury jewelry.
Movers & Shakers
David Kellie will step down as CEO of the Natural Diamond Council (NDC) at the end of 2025, he announced on LinkedIn. Kellie informed the NDC board after last month’s signing of the Luanda Accord, which secured additional funding for the organization. He will remain through year-end to onboard new members and oversee the launch of a new marketing campaign in Q4.
Titan Company has named Arun Narayan as the new CEO of its jewelry division, effective January 1. Narayan, who currently leads the Tanishq India brand, will succeed Ajoy Chawla. Chawla has been appointed as the Group CEO of Titan.
Comments