In a move emblematic of the mine to retail push, Aber Diamond Corp. shareholders have approved changing the company's name to Harry Winston Diamond Corp., according to Reuters.

The report said the company—which owns a 40 percent stake in Canada's Diavik diamond mine and purchased full ownership of fine-jewelry and watch retailer Harry Winston last year—hopes the name change will polish its image by putting focus on its luxury retail unit.

“It is believed that such a name will allow the corporation to attract broader media coverage and interest through the wider recognition of the Harry Winston brand name,” Chief Executive Robert Gannicott reportedly told shareholders.

The change also reflects the company's focus on both retail and mining, he said.

“A promotion of the company's equity, in turn, promotes its jewelry products, and the promotion of the jewelry products, in turn, supports the promotion of the company's equity,” he said.

Analysts at RBC Capital Markets said the change indicates a new direction with the shift from a diamond-mining play to an integrated diamond marketing/specialty company.

The expectation by analysts is that as the company grows in profitability and size, it will attract investors who are typical of luxury goods companies.

Aber also released its first-quarter results for the period ended April 30, with sales up from $119 million to $141 million. Net earnings fell, however, from $24 million in the same period last year to $3 million.

The company said net earnings for the current quarter were negatively impacted by the foreign-exchange adjustment of $13.6 million, not deductible for Canadian tax purposes, applied to the provision for future income taxes payable, which is attributable to the 6 percent strengthening of the Canadian dollar against the U.S. dollar during the quarter.

Source: Nationaljeweler.com

www.nationaljeweler.com