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RAPAPORT... DGSE Companies Inc. reported that revenue fell 13 percent year on year to $18.1 million in the fourth quarter that ended on December 31. Nonetheless, DGSE stated that it continues to experience growth across its jewelry business, although depressed prices for precious metals market drove a lower volume of bullion and scrap categories. DGSE recorded a profit of $272,000, or 2 cents per share, compared with a loss of $405,000, or 3 cents per share, one year ago.
The company's revenue for the full year fell 19 percent to $70.7 million; however, gross profit as a percentage of sales improved to 17.9 percent compared with 16.3 percent in 2013. DGSE recorded a loss of $4.5 million, or 37 cents per share, which was up from a loss of $2.7 million, or 22 cents per share, the previous year.
Dusty Clem, the CEO of DGSE, explained that 2014 was a year of substantial change given that the company exited the Southern Bullion retail chain and concluded legacy legal and sales tax issues. "Subsequent to these changes, we were pleased to see modest profitability in the most recent two quarters and believe that our focus on growing our jewelry, diamond and watch businesses is the right path forward for the company," he said.
DGSE anticipates improving its business by moving toward operating fewer, but larger stores in the group's most important market, which is the Dallas and Fort Worth metropolitan area. "Our goal is to provide a greater breadth of inventory, services and experience for our clients. We are also re-launching our website to provide a substantially improved online customer experience. This exciting change will allow us to shift a greater share of our marketing focus to ecommerce and to broaden our potential reach beyond our physical locations,” he said.
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