House of Taylor Jewelry Q3 Sales Shoot Up Eight-Fold

House of Taylor Jewelry posted third quarter net sales of $12 million, eight times higher than the $1.3 million in the same period a year ago, and nearly five times more than the $2.5 million reported in the second quarter.

The jewelry company, whose principal shareholders include Elizabeth Taylor and Kathy Ireland, reported that January – September net sales rose sharply to $15.9 million from $3.2 million in the comparable prior-year period and exceeded the targeted $14 million threshold established for the nine months.

According to Jack Abramov, president and CEO, the company has established alliances with some of the world's largest diamond mining and polishing companies. “Now, our customers can also depend on House of Taylor Jewelry to serve as a reliable, competitive and consistent source of fine polished diamonds in all shapes and sizes - one of the product categories most in demand year-round.”

However, while the company's loose diamond sales during the quarter produced $10.4 million the “competitive pricing in the loose diamond wholesale market” hurt margins compared to last year. Abramov said he believes that their diamond program will enhance brand awareness and result in increased jewelry sales, which traditionally carry higher margins.

The good sales helped the company narrow its loss from operations to $928,094 from $2.1 million in the preceding second quarter and from $997,498 a year ago. Including a loss on an adjustment of a warrant liability of $896,362 and interest expense of $1.4 million primarily related to the convertible notes, House of Taylor Jewelry sustained a third-quarter net loss of $3.1 million versus a net loss of $1.0 million a year earlier.

The net loss for the 2006 year-to-date period amounted to $5.5 million, including a gain on an adjustment of a warrant liability of $1.7 million and interest expense of $2.3 million principally related to the convertible notes. A year ago, the company posted a net loss of $1.9 million for the 2005 nine-month period, which included other income of $981,980.

House of Taylor Jewelry currently has relationships with 179 independent retail organizations, representing approximately 226 retail doors in major U.S. markets and abroad.