Charles & Colvard’s Sales +38% in Q1 2015
May 03, 15
(IDEX Online News) – Moissanite producer Charles & Colvard, Ltd. announced that its sales in the first quarter of 2015, ended March 31, increased 38 percent to $8.4 million, compared with $6.1 million in 2014.
Finished jewelry sales were $4.6 million for the quarter, compared with $2.4 million in 2014, a 91 percent increase. Loose jewel sales, including the Company’s whiter Forever Brilliant® moissanite, were $3.8 million, compared with $3.7 million for the year-ago first quarter, an increase of 4 percent.
The company said its wholesale business revenue increased 15 percent to $5.9 million, and was 71 percent of sales for the quarter, compared with $5.2 million, or 85 percent of sales in the year-ago first quarter.
Charles & Colvard’s direct-to-consumer e-commerce business, Moissanite.com, increased 56 percent to $1.1 million, and represented 13 percent of sales, compared with the year-ago first quarter when it was $0.7 million, or 12 percent of sales.
Operating expenses were $5.2 million for the first quarter of 2015, compared with $3.6 million for the year-ago first quarter. The company said this was primarily due to increased expenses related to the transition of its president and CEO and increases in commission expenses primarily associated with growth in Lulu Avenue, a direct-to-consumer home party business.
Lulu Avenue®, increased 562 percent for the quarter to $1.4 million and was 16 percent of sales, compared with $0.2 million, or 3 percent of sales in the first quarter of 2014.
The company reported a net loss for the first quarter of $1.7 million, or $0.08 per share, compared with a net loss of $1.1 million, or $0.05 per share, in the year-ago first quarter.
“Today we report our strongest first quarter revenues in ten years. Improvements were shown in all three of our business segments, with particularly strong growth in our direct-to-consumer businesses, Lulu Avenue and Moissanite.com,” said president and CEO Marvin Beasley. “We believe the growth in the direct-to-consumer businesses reflects the execution and implementation of strategies that are specifically designed to increase awareness and grow our business.”