News

Advanced Search

Charles & Colvard Reports Revenue +29%, Loss of $492K

Aug 9, 2013 3:34 PM   By Jeff Miller
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Charles & Colvard reported that its revenue rose 28.8 percent year on year to $6.5 million during the second quarter that ended on June 30. However, costs and expenses surged 63 percent to $7.4 million, leading to an operating loss of $858,311. The company recorded a loss of $491,585, or 2 cents per share, for the quarter compared with a profit of $548,572, or 3 cents per share, one year ago.

Loose moissanite gemstone net sales were flat at approximately $4.1 million. Finished jewelry  sales jumped 151 percent to approximately $2.4 million.

The company sold slow moving inventory at reduced margins, negatively impacting  its overall gross margin percentage in the second quarter.

Company expenses rose primarily due to its  investments in marketing and branding initiatives to better position Charles & Colvard’s product lines.

“We continued to take steps in the second quarter to strategically support and align our growing retail brands for the holiday season and future growth,” said Randy N. McCullough, the CEO of Charles & Colvard. “The sale of close-out jewelry during the quarter hampered our gross margin percentage, but we believe this is a limited occurrence event and an important step in fine-tuning our inventory and maintenance of our relationship with key distribution channels, positioning them with the opportunity for strong sales in the second half of the year.”

Steve Larkin, the company's chief operating officer, explained that they've achieved a wider distribution channel through a new relationship with Amazon.com. ''This is a testament to our continued effort to promote moissanite and broaden consumer access to the brightest gemstone available.''

Tags: charles, colvard, Jeff Miller, loss, moissanite, operations, revnue
Similar Articles
Zeev Maimon MazalitIsraeli Fintech Group Launches Diamond Lending
Aug 10, 2021
An Israeli financial-technology company is set to offer almost $8 million in credit to the diamond industry every month after
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2021 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.