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FBI Investigates Headley-Whitney Jewel Heist
Aug 4, 1994 2:12 PM
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A multi-million dollar jewelry heist from the Headley-Whitney
museum in Lexington, Ky. is the target of an FBI investigation with
possible international implications.
Burglars broke into the museum early July 17, cut telephone lines and
the silent alarm system and took 50 to 60 pieces from the
museumUs jewelry collection. Jim Frazier, president of the
museum's board, said the thieves were true professionals. "They
knew what they were doing; they knew what they were looking for.
They'd been here before," he said.
George Headley had created the opulent jewelry early throughout
his career designing for leading Hollywood actresses Judy Garland,
Joan Crawford, Mae West and Fanny Brice. He'd had a boutique in the
Bel Air Hotel, Los Angeles, and frequently used dogs to model his
creations around the hotel's pool for wealthy patrons, according to
Lisa Blackadar, the museum's curator. "It's all
irreplaceable," said Frazier.
Because the items stolen were unusual one-of-a-kind works of art,
investigators think they are too recognizable to fence. There is
speculation that the items may be of interest to collectors in
countries other than the US.
"We're conducting an investigation and encouraging anyone with
information to come forward," said Bill Cheek, an FBI spokesman.
Israel Diamond Exports Rise
The Israel diamond industry continued to expand its exports in the
first six months of 1994 with net overseas sales of $1.7 billion,
compared to $1.5 billion for the same period last year, reports the
Israel Diamond Institute.
The United States is the leading market. Net sales during the
period were $722 million, compared to $596 million for the first six
months of 1993, a rise of 21%. Hong Kong was the second largest
market with six-month imports of polished gem stones from Israel
amounting to $311 million, compared to $262 million in 1993, an
increase of 19%.
Economic Bulletin
ECONOMY IS UP 3.7%; HIGH INVENTORIES CONCERN ANALYSTS
The Commerce Department recently reported that the nation's economy
grew at an annual pace of 3.7% in the second quarter. The report also
showed, however, that while businesses were expanding their
production, unsold goods were piling up on store shelves as consumer
spending slowed.
Industry analysts are concerned that well-stocked retailers might slow
or, perhaps, stop ordering new goods, thereby causing the pace of
economic growth to slow in the near future. The one positive upshot of
this would be inflation control: slower growth would help keep
inflation-- now hovering just below 3%--in check, in turn reducing the
need for the Federal Reserve to raise interest rates.
"The U.S. economy continues to turn in a fine performance," said Laura
D'Andrea Tyson, who heads President Clinton's Council of Economic
Advisers. "So far, everything we've seen in 1994 confirms our forecast
of a sustainable investment-led expansion with low inflation."
Consumer Confidence Continues Its Mild Fluctuations
Consumers' confidence in the economy slipped slightly in July--it had
edged up in June--but still remained near a four-year high, according
to a survey released July 26 by the Conference Board.
The Board, a business research group in New York, said its July survey
found that consumers' assessment of economic conditions continued to
improve, though their expectations for the next six months fell
slightly.
The group said its monthly consumer confidence index, in which 1985
equals 100, was at 91.6 in July, down slightly from its four-year high
of 92.5 in June.
Surge In Installment Buying
"Americans are piling on the debt, with monthly totals for car loans,
credit cards and other installment loans growing at a ferocious pace
in recent months," stated a recent article in The New York Times.
Consumer installment debt, which includes credit cards and auto loans
but excludes home loans, grew more than $10 billion each month in
March, April and May, ending the period at $838 billion, according to
the Reserve. "The heady growth, at an 18.7% annualized rate, harks
back to the conspicuous consumption heyday of the mid-1980s," the
article said.
Significantly, the new credit boom appears to be fueled by
discretionary borrowing, not by distress borrowing from consumers who
have exhausted all their other options.
Richard Aspinwall, a senior vice president at Chase Manhattan,
attributed the credit surge to job growth, the benefits of mortgage
refinancing and improved confidence.
Economic Highlights: "Although consumers continue to express concern
with the job situation--for both the present and the immediate
future-- confidence is currently at a level which historically has
been associated with a reassuringly lively economy," says Fabian
Linden, executive director of The Conference Board's Consumer
Research Center.
In fact, in a separate report, the Labor Department said that the
number of initial applications for state unemployment benefits was
unchanged in the last week of June from the previous week. A
seasonally adjusted 353,000 people filed first-time claims in the week
that ended on June 25.
In the Board's June survey, less than 30% of all respondents
reported that jobs are hard to get. Still, the number of people
reporting that jobs are plentiful continues to be low.
Slightly more respondents than a month earlier reported that
business conditions are good. When looking toward the future, close
to 20% of respondents think that conditions will improve.
Regarding their own family's incomes, optimists are more than twice as
numerous as pessimists. More than 20% of the people questioned
answered that their financial situation will improve over the next
six months.
And the numbers support these claims. The income of Americans rose
for the fourth consecutive month in May and spending nearly kept pace,
the Government reported on June 30. This, along with the latest
data on claims for jobless benefits, indicates that the economy
expanded at a comfortable pace this spring, analysts said.
"The basic message is that the economy has downshifted to a
slower growth pace, Robert Dederick, an economist with the
Northern Trust Company in Chicago, told The New York Times. "I
think the consumer will come back. But the great spurt is behind us,"
he said.
Personal Income
Meanwhile, the Commerce Department reported that Americans'
personal income rose six-tenths of 1 percent in May--as it did in
April--spurred by job growth, a longer average workweek and higher
hourly earnings.
Consumer spending increased four-tenths of 1 percent,
concurrently--slightly higher than anticipated, after dipping a
revised four-tenths of 1 percent in April. Spending, which accounts
for two-thirds of the nation's economic activity, has risen in 12 of
the last 14 months.
What it all means
"Once again, the economic data indicates the U.S. economy is not
overheating but instead growing at a pace consistent with stable
inflation," Donald Straszheim and Bruce Steinburg, economists with
Merrill Lynch & Company, said in a statement.
Many analysts expect the economy's performance during the second
quarter, which ended June 30, to be at least duplicated and
probably exceeded the first three months of the year.
The economy grew at an annual rate of 3.4% in the first three
months of this year; and while this was a drastic slowing from the
growth rate of 7% at the end of last year, analysts said the pace of
the expansion was solid, if unspectacular. The economy grew at a rate
of 3% for all of 1993.
Buying Plans Weaker
Although confidence has perked up in recent months, consumers'
buying plans for major items continue to soften. Plans to buy an
automobile are down for the second consecutive month. Intentions to
purchase a home have been declining in recent months. Interest in
buying major appliances is weaker too.
Spotlight on the Jewelry Industry
Lazare Kaplan's Sales Up Lazare Kaplan International Inc. () has
announced that net sales for the year ended May 31, 1994 totaled $204
million, an increase of 29% from last year. The company reported
net sales of $43 million for the fourth quarter ended May 31, an
increase of 12% over the same period last year.
Net polished diamond sales from last year for the year ended May 31
increased 18% to $51 million; sales increased 59% to $14 million
over the fourth quarter of last year.
"The significant improvement in polished sales at Lazare Kaplan
reflects improving economic conditions and growing consumer
confidence in the United States and Pacific Rim markets," said Leon
Tempelsman, president of the company.
The company posted net income of $3 million for the year ending May
31, 1994, compared to a net loss of $903,000 the previous year.
The company reported net income of $746,000 for the fourth
quarter, compared to a net loss of $469,000 for the same period at
year . These increases are primarily attributable to higher
sales volume and improved higher gross margins.
Town & Country Posts Loss Due To Lower Margin Merchandise
Town & Country Corp. () reported sales of $70 million for its
first fiscal quarter ended May 29, 1994, up from $64 million from the
same period a year ago. The company reported a first quarter net
loss of $2.4 million, or $0.13 per share, compared with a net loss of
$498,954, or $0.04 per share, in last year's May quarter.
Frank Carrera, corporate vice president, said that the company's net
loss was due to two situations. The company's Balfour division
invested heavily in product development, new tooling, staffing and
advertising in connection with its more aggressive direct marketing of
sports-related jewelry, and a similar situation arose with
commemorative.
The increased costs at Balfour were expected; the lower margins
were not.
Lower margin merchandise in the company's fine jewelry division
accounted for most of the revenue surge, commented C. William
Carey, chairman and CEO. He also noted that jewelry retailers
continue to apply margin pressure, even against lower price-point
ranges in diamond, colored stones and gold product lines.
Mr. Carey added: "The demand during the first quarter for lower
price-point merchandise reflects the seasonal nature of our
industry, as retailers typically wait until later in the year to
build inventories of higher-priced jewelry in anticipation of
Christmas. Even so, we are not satisfied with out first quarter
performance, and we are focusing on the margin issues and taking
steps to improve profitability."
Zale Announces Management Changes
Zale Corp. announced the resignation of three senior executives,
effective immediately, in the Zales-Gordon's division: Jerry Daws,
president; Terry Garcia, senior vice president of
merchandising; and Glenn Stewart, marketing director. On July 20,
Zale named Mary Forte president of the Gordon jewelry division. Forte
comes to Gordon's from QVC/ Home Shopping Network, where she was
senior vice president. Larry Pollock, Zale's president and COO, said
the moves were part of the company's strategy to set up Zale and
Gordon as separate and distinct divisions.
Reeds Jewelers Announces 10% Stock Dividend
Reeds Jewelers Inc.Us board of directors has declared a 10%
stock dividend on the company's outstanding common stock. The stock
dividend will be payable on August 15, 1994 to shareholders of
record as of August 1, 1994. The dividend will be paid at a rate of
one share for each ten shares owned, with cash paid in lieu of
fractional shares.
Home Shopping Network's Sales Up
The Home Shopping Network Inc.Us net sales increased to $274 million
in the second quarter this year, or 9.5%, compared with net sales
of $250.3 million for the same period of last year.
Net earnings for the second quarter were up to $1.9 million--or $0.02
per share--from $1.6 million during the same period last year, despite
a $2.9 million pre-tax loss on the proposed sale of a wholly owned
subsidiary.
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Tags:
Consumers, Economy, Government, Hong Kong, Israel, Israel Diamond Institute, Jewelry, Lazare kaplan, Production, United States, Zale
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