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RAPAPORT... LJ International reported that revenue rose 6 percent year on year to $42.8 million for the second quarter that ended on June 30. The company also restated its revenue from one year ago to $40.2 million, up from $28.4 million was reported. Retail sales this quarter rose 3 percent to $27.8 million, while same-store sales plummeted 27 percent. Wholesale revenue rose 14 percent to $15 million. The company reported a loss of $1.9 million compared with profit of $3.7 million one year ago. LJ International opened 17 new ENZO jewelry stores during the second quarter, bringing its number of chain-stores to 225. Inventory was increased 7 percent to $184.76 million as of June 30, compared with the level reported on December 31. Yu-Chuan Yih, the chairman of LJ International, said, ''In the face of a bleak global economy and decelerated Chinese economic growth, the jewelry sector has seen a prominent slowdown in the second quarter, especially in discretionary gem-set items, and has affected the industry as a whole. As a jeweler with close to half our revenue exposure in gem-set jewelry, we felt a greater impact than jewelers with a higher proportion on gold jewelry.'' The company reduced its marketing expenses to less than 6 percent of sales, offered more lower priced diamond and gemstone pieces and replaced non-performing stores with new openings in better locations, Yih stated. ''We believe these strategic initiatives will ensure we are best positioned to capitalize on growth opportunities in market upturns,'' Yih said.
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