You wouldn't know it from the huge party that Harry Winston threw for Fashion Week yesterday, but the picture isn't looking so sparkly for the jeweler to the stars.

Harry Winston Diamond Corp. has reported a $24.8 million net loss for the company's second quarter fiscal year 2010.

Both mining and retail sectors took a hard hit. The mining part of the Toronto, Canada-based company saw a 56 percent decrease in sales compared to the same quarter last fiscal year (customers were probably spending their hard-earned dollars on carrots rather than carats); the retail segment reported a 40 percent decrease in sales.

Robert Gannicott, chairman and CEO of the company explains to investors, "During this quarter the diamond industry as a whole adjusted production to the curtailed demand in the intermediate part of the diamond pipeline due to the economic conditions."

Sounds complicated to us, but Gannicott ends on a optimistic note, saying that sales month-to-month have slowly been edging upwards.

And it looks like the jewelry company is taking their hopeful outlook to heart. Last night's posh launch of the "New York Collection by Harry Winston" at the Fifth Avenue store in NYC yesterday brought out the red carpet as well as some fashionable stars, including Michelle Obama fave Jason Wu, U.S. Olympics swimmer Ryan Lochte and "Slumdog Millionaire" beauty Freida Pinto.

Interested in more Harry Winston news. Read more about the company's financial troubles here.