Net sales for House of Taylor Jewelry increased 207 percent to $2.5 million from $809,000 a year ago and increased 82 percent from $1.4 million in the immediately preceding first quarter.
For the quarter, ended June 30, the company said Monday that it sustained a net loss of $290,000, including a gain of $2.6 million on an adjustment of a warrant liability. The loss principally reflects start-up expenses in connection with marketing and product roll-out and includes approximately $1.1 million in non- cash expense related to amortization of loan costs and intangible assets, and stock based compensation for services. In the prior-year’s second quarter, the company recorded a net loss of $487,000.
For the first half of 2006, also ended June 30, net sales rose 106 percent to $3.8 million from $1.9 million in the comparable prior-year period. The net loss for the first six months of 2006 amounted to $2.4 million, versus a net loss of $836,000, in the 2005 year-to-date period.
As of June 30, House of Taylor Jewelry had cash, cash equivalents and marketable jewelry inventory of $11.1 million, compared with $6.4 million at Dec. 31, 2005. The company has no bank debt.
“We have made significant progress laying the groundwork and establishing the infrastructure for rolling out our branded products to independent jewelry retailers throughout the United States and in select international markets,” said Jack Abramov, president and chief executive officer. “Initial response has been excellent, as evidenced by orders the company has received at recent jewelry industry trade shows and the early direct contacts our newly expanded sales force is making with store owners and buyers.
Abramov said House of Taylor has relationships with nearly 135 independent retail organizations representing approximately 175 retail doors in major U.S. markets and abroad. It also has added new relationships with major suppliers and its inventory includes more than 600 newly designed jewelry pieces ranging from entry level to premium and couture.
Led by an expanded management team, which now includes a vice president of operations and vice president of sales and merchandising, House of Taylor Jewelry has recruited and trained a seven-person sales force that is calling on independent retailers in key U.S. cities.
House of Taylor Jewelry is a Los Angeles-based international jewelry company whose principal shareholders include entities owned by Dame Elizabeth Taylor and Kathy Ireland, along with members of the Abramov family. It serves fine jewelry retailers worldwide with diverse jewelry collections marketed under the brands Elizabeth, House of Taylor Jewelry and Kathy Ireland Jewelry.