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Supply Issues Curb Retail Sales at Berkshire Hathaway
Nov 7, 2022 8:34 AM
By Leah Meirovich
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RAPAPORT... Growth at the retail division of Warren Buffett’s Berkshire Hathaway slowed in the third quarter as supply-chain issues led to an inventory shortage.
The unit — which includes jewelry chains Borsheims, Helzberg Diamonds and Ben Bridge Jeweler — saw sales increase 5% year on year to $4.8 billion, the company reported Saturday. That represented a gentler rise than the 8% gain the company noted the previous year. Pretax earnings for retail fell 4% to $396 million.
The inventory challenges primarily affected sales of cars, which make up the largest portion of Berkshire’s retail division.
“Unit sales continue to be constrained by low new-vehicle production...attributable to the ongoing global computer-chip shortages and other supply-chain disruptions,” the company explained.
Revenues from manufacturing of consumer products, including jewelry maker Richline Group, slipped 6% to $3.69 billion, while pretax earnings slid 44% to $272 million.
Image: A Borsheims store in Nebraska. (Borsheims)
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Tags:
Ben Bridge Jeweler, Berkshire Hathaway, borsheims, Helzberg Diamonds, Jewelry, Leah Meirovich, richline group, warren buffett
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