Finished Jewelry Sales Increase
Sales at Charles & Colvard Ltd. for the three months that ended on September 30, 2011 decreased 4 percent year on year to approximately $2.9 million while loose moissanite revenue fell 22 percent to $2.2 million. However, finished jewelry sales jumped 303 percent to $682,000. The company remained debt-free.
The company recorded net income of $110,000, or one penny per share in the third quarter of 2011, which was down from profits of $512,000 one year ago. Operating expenses increased $579,000, or 35 percent during the third quarter. Of those increases, sales and marketing expenses increased $501,000, or 99 percent.
Charles & Colvard noted that fluctuations in quarter to quarter sales were primarily the result of the timing of restocking orders received from the company’s customer base and the company’s continued focus on expansion into the finished jewelry business through the creation of new sales channels, including televised home shopping networks that are experiencing high levels of success with basic and designer-inspired fashion lines of finished moissanite jewelry.
“While our goal was that the year-to-date execution of our strategies would have resulted in stronger revenue in the third quarter, we are very encouraged by the apparent rebound in sales that we are seeing in the fourth quarter,” said Randy N. McCullough, the chief executive of Charles & Colvard. “We remain confident that our multi-channel sales and marketing strategies will play a key role in the accomplishment of our growth objectives.”