Charles & Colvard, Ltd., Morrisville, N.C., the sole source of moissanite—a created jewel available for use in fine jewelry—reported significant sales and profit increases for the second quarter of 2002.
The company reported second quarter sales of $4.1 million on shipments of 25,300 carats, resulting in net income of $638,000 or $.05 per diluted share. This represents a 65% increase over last year’s second quarter sales of $2.5 million on shipments of 12,500 carats and a 78% improvement over the 2001 second quarter net income of $359,000 or $.03 per diluted share.
Carat shipments during the second quarter of 2002 were 103% above shipments during the same period of 2001. North American carat shipments were up 115% for the quarter, primarily due to distribution expansion into a number of new outlets, with increased distribution at brick and mortar retailers, including several new chains, and increased sales to home shopping television customers. International carat sales rose 55% primarily due to expansion of European home shopping channel distribution and increased sales in certain Asian and Central American countries. The average selling price for the second quarter was 2% above the first quarter of 2002 and 14% below the second quarter of 2001. The reduction from 2001 was due primarily to increased sales of smaller stones, which have a lower price per carat.
Sales for the six months ended June 30, aggregated $8.2 million on shipments of 51,000 carats. Net income for the first half of 2002 was $1,138,000 or $.08 per diluted share. Year-to-date sales are 53% ahead of first half 2001 sales of $5.4 million on shipments of 28,000 carats. Six months net income rose nearly 88% compared to $606,000 or $.05 per diluted share in the first half of 2001.
“This represents our third consecutive quarter of record profits. Equally satisfying is the 65% increase in second quarter sales which to us means that we, along with our distribution partners, are creating growing recognition and demand for moissanite jewelry,” Bob Thomas, chairman, president and CEO of Charles & Colvard, said in a statement. “Second quarter carat sales more than doubled those in the same quarter last year. Our 115% increase in North American carat shipments is particularly noteworthy when compared to sales levels seen within other segments of the jewelry industry.”