Lazare Kaplan International’s sales and revenue dropped in its most recent quarter, as the company was hit by a sales decline in both its branded and nonbranded product.
According to its latest 8-K filed April 15 with the Securities and Exchange Commission, in the third quarter of fiscal 2015 (ended Feb. 28), the company had $9.2 million in sales, compared to $13.9 million the prior year. Revenue was $9.8 million, compared to last year’s $14.4 million.
“Rough diamond prices charged by producers have generally been rising ahead of polished diamond prices, which in various categories have experienced price decreases,” it said. This places “significant pressure on diamond manufacturers.”
The company once again did not file a full financial report due to what it calls “material uncertainties,” which continue to threaten its ability to conduct its business, it said. This marks its sixth year of not filing full financial reports.
LKI is still engaged in a long-running legal brawl with former lender Antwerp Diamond Bank and parent company KBC. In March 2010, ADB brought litigation against LKI seeking payments due under a $45 million facility. LKI denied it owed ADB that amount, and in December 2011, it filed suit against ADB, claiming the bank aided in the theft of $135 million of its diamonds. It is also appealing a verdict from the Antwerp court of commerce on the ADB matter. The Antwerp Court of Appeals has scheduled hearings on that issue for September 2016.