Yuvikas jewellery sales are plunging as a number of major brands are struggling to cope after flooding caused a surge in demand.ABC News reported jewellers are struggling with the high demand from tourists who are turning to luxury jewellery as a way to enjoy their vacation destinations.
Jewellers across the country are also reporting that they are seeing a surge of tourists who have never visited before and who are trying to buy expensive jewellery on the black market.ABC’s Victoria Trudel reported that some luxury jewellars in Sydney, Melbourne and Adelaide have reported that their jewellery is being sold on the open market at much higher prices than expected.
Jewellery maker Yuvica is one of the biggest names in the jewellery industry and has seen its sales slide sharply after flooding hit the country.
The company said it was now in the process of shutting down its Perth store and will be laying off staff and staff in Australia.
Its chairman and chief executive officer, Yuviko Kohn, said the company was facing the biggest loss in its history and was preparing to make a major restructuring of its operations.
She said the business was experiencing a significant increase in demand and the flood affected the company’s supply chain.
“We’ve had a number over the last two weeks that we’ve been working very hard to mitigate the impact,” she said.
“And it’s now going to be very challenging to keep it going, especially with the influx of people that have come into our store.”
Jeweller Yuvicas stock fell about 10 per cent on Thursday morning after a report that the company had lost more than $1 billion in the flood.
“It’s been a big one for us, we’ve lost $1.4 billion, and we are just very, very sorry,” Ms Kohn said.
The stock is currently trading at $1,835 a share.
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