Charles and Colvard Expects Q1 Sales to Fall 25%-33%

Charles & Colvard recently announced that first quarter sales will fall below expectations. “Based upon customer orders and indications, we expect first quarter 2006 sales to be between $7.5 million and $8.4 million, or between 25 percent to 33 percent less than last year's first quarter sales of $11.2 million,” said Bob Thomas, president and CEO in a release.   

The lower expectations are based on substantially lower orders from K&G Creations during the first quarter of 2006 when compared with the first quarter of 2005. As a result of the Federated - May Company merger, Finlay's leased department store retail counters and distribution of moissanite jewelry supplied by K&G Creations at Finlay is contracting by approximately 20 percent.

Thomas stated, “We continue to work to expand the distribution of moissanite jewels. Moissanite jewelry is currently at approximately 113 Helzberg locations, 23 more locations than those previously announced and we expect to continue the rollout to additional Helzberg locations during the year."

Charles & Colvard is the sole source of moissanite, a created jewel used in fine jewelry.