House of Taylor Quarterly Sales Triple, Yet Ends in the Red

House of Taylor Jewelry, whose shares began trading on NASDAQ in March, reports that net sales for the second quarter ended June 30 increased 207 percent to $2.5 million from $809,000 a year ago and increased 82 percent from $1.4 million in the first quarter. Despite that, it sustained a net loss of $290,000.

The second quarter for the firm, whose principal shareholders include Elizabeth Taylor and Kathy Ireland, closed on an optimistic note, despite the loss. The company said the loss principally reflects start-up marketing and product roll-out expenses. It also includes approximately $1.1 million in non-cash expense from loan costs amortization and intangible assets, and stock based compensation for services. In the prior-year's second quarter, the company recorded a net loss of $487,000.

For the first half of 2006, net sales rose 106 percent to $3.8 million from $1.9 million. The net loss for the first six months of 2006 rose to $2.4 million compared to a net loss of $836,000 in the 2005 year-to-date period.

By the end of the quarter, the company increased its cash, cash equivalents, and marketable jewelry inventory to $11.1 million from $6.4 million at the start of the year. The company has no bank debt.

The company designs, markets and sells branded jewelry to independent jewelry retailers. The sells fine and fashion jewelry under the brand names Elizabeth(R), House of Taylor Jewelry(R) and Kathy Ireland Jewelry(R) Exclusively for House of Taylor Jewelry.

“Now more than ever, independent jewelers are seeking new co-op branding and marketing initiatives to bring visibility and traffic to their stores,” said Jack Abramov, president and CEO. “We believe House of Taylor Jewelry is uniquely positioned to provide jewelry retailers with a competitive advantage to help them gain local market share.”

Abramov said House of Taylor Jewelry currently has relationships with nearly 135 independent retail organizations representing approximately 175 retail doors in major U.S. markets and abroad. House of Taylor Jewelry inventory includes over 600 jewelry designs ranging from entry level to premium and couture. The company's product expansion focused on diamond basics, loose diamonds, exclusive Elizabeth one-of-a-kind jewels and new Kathy Ireland Jewelry bridal and fashion collections.

House of Taylor Jewelry was formed in May 2005 through exclusive licensing agreements with Elizabeth Taylor's Interplanet Productions, and SandBox Jewelry, LLC, a subsidiary of Kathy Ireland Worldwide.