Lazare Kaplan faces 24% loss in net sales

Lazare Kaplan International has seen its net sales decline by 24 percent to $78.3 million, in the three months ending August 31, 2008. The company attributes this loss to the current economic tightness and anticipates demand will fall for diamonds during the season as incomes are more stringent.

With this, it is preparing for lowered net sales in the coming months. Its revenues from polished diamonds increased barely by 1 percent to $40.9 million, in comparison to the massive fall of 46 percent in sale of its rough diamonds, which generated $37.4 million worth of revenues.

In the three months, the company adopted cutting its sales cost by 24 percent to value at $71,856, which helped increase profits by 125 percent to $900,000.