Harry Winston Diamond Corporation's first quarter sales, which were up 26% year-on-year and totaled $143.9 million, reflect improving rough diamond prices as well as increasing sales and profit for the luxury brand segment, Harry Winston Chairman and CEO Robert Gannicott said last week as the Q1 results were announced.

"Both sides of our diamond business are performing well," Gannicott added.

Harry Winston owns a 40% stake in Canada's Diavik diamond mine, which generated diamond sales of $62 million, a 27% increase over the corresponding quarter of 2010. The company produced 0.5 million carats of rough diamonds.

Luxury brand sales stood at $81.9 million for the quarter, a 26% increase over Q1 2010 that is attributable to high jewelry sales in the US and increased sales of watches. Profit from luxury brand sales was $2.7 million higher than in Q1 2010.

Q1 operating profit was $4.7 million, and net profit to the company's shareholders comprised $3.6 million – compared to the $2.1 million net profit realized a year ago.