Charles & Colvard Reports Decrease in Sales in 3rd Quarter

Charles & Colvard, the Morrisville, N.C.–based moissanite maker, has reported a decrease in sales for the third quarter of this year.

Sales were reported at $4.5 million, down 34 percent over the $6.9 million reported in the same period last year. The bulk of losses came internationally, where sales were down 66 percent, from $3 million in the third quarter of 2013 to $1 million in the third quarter of 2014. U.S. sales fell just 9 percent, from $3.9 million in the third quarter of 2013 to $3.5 million in the third quarter of 2014.

Wholesale business was also down; it was at $6.4 million in the third quarter of 2013 and fell 46 percent to $3.4 million in the third quarter of 2014.

Some good news for the company: Direct-to-consumer sales via Moissanite.com and Lulu Avenue increased 114 percent over the same period in 2013, from $500,000 in the third quarter of 2013 to $1.1 million in the third quarter of 2014.

“While we are very disappointed in these results, we remain focused on increasing sales regardless of market conditions,” said Randy McCullough, CEO of Charles & Colvard. “We are concentrating on several initiatives to strengthen our positioning well into the future and drive revenue growth, especially in the U.S. market, for the fourth quarter, which historically has been strong for us.”