Moissanite manufacturer Charles & Colvard announced its second quarter sales increased 29 percent over 2012 to $6.5 million.
Still, the company posted a loss in the second quarter of $492,000. During the second quarter of last year, it posted net income of $549,000. The company attributed to the loss to a $761,000 investment in its consumer-direct business model, as well as selling slow moving inventory at reduced margins.
“The sale of close-out jewelry during the quarter hampered our gross margin percentage, but we believe this is a limited occurrence event and an important step in fine-tuning our inventory and maintenance of our relationship with key distribution channels,” said Randy N. McCullough, Charles & Colvard CEO, in a statement.
The company also announced it has entered into a wholesale distribution agreement to sell its product over Amazon.com.
Highlights of Charles & Colvard’s financials for the second quarter (ended June 30):
- Net sales: Up 29 percent, to $6.5 million
- Loose moissanite gemstone net sales: Flat, at $4.1 million.
- Finished jewelry net sales: Up 151 percent to $2.4 million
Highlights of Charles & Colvard’s financials for the fist half of the year (ended June 30):
- Net sales: Up 41 percent, to $13 million
- Loose moissanite gemstone net sales: Up 29 percent, to $8.4 million
- Finished jewelry net sales: Up 70 percent, to $4.6 million
- Net profit: A loss of $185,000, compared with net income of $173,000 in the corresponding period of 2012