The company will continue to pitch its ethical product to millennials
Moissanite company Charles & Colvard reported better financial results for the second quarter of 2016 (ended June 30), with higher sales and a narrower loss.
Net sales totaled $6.5 million, a 6 percent jump from the prior year. Its wholesale business comprised 82 percent of that ($5.4 million, up 9 percent), while e-commerce sales accounted for the other 18 percent ($1.2 million, down 8 percent).
The company posted a $988,000 loss, compared to a $4 million loss in the second quarter of last year.
In a conference call following the release of its financial results, president and CEO Suzanne Miglucci told analysts:
– The company plans to launch a new website and “brand platform” to the market, which will include an expanded line of bridal jewelry.
– The company will continue to stress the ethical origin of its product to millennial consumers: “A lot of millennials did not know about many of the practices related to mining as it relates to jewelry. So once we exposed that and made that part of the dialogue, we found a great shift in interest toward moissanite because I will tell you this audience, absolutely, is all about the social and ethically sourced product, and that’s sort of pervasive across all of the market research. So I absolutely believe that we’re a product aligned with that particular consumer.”
– A previously announced test with a major retailer did not pan out: “We were restricted from doing any promotions, there was very little draw to get consumers into the store, and there was very little education of what moissanite is, and we believe that that negatively affected our ability to get traction there.”
However, its relationship with Boscov’s department store is going better, she said: “It’s a very important relationship with us.… They will continue to be a partner of ours going forward.”