Diamonds / Industry

Jewelry Company Financial Results Vary From Hot To Not


Brilliant Earth, Pandora, and Watches of Switzerland all posted strong results for their most recent quarters, while Charles & Colvard posted a stark decrease in sales.

Here is JCK’s summary of a busy week in financial results.

Brilliant Earth

Period: Third quarter of 2022 (ended Sept. 30)

Sales: Up 17% to $111.4 million

Net income: Up 44.3% to $5.7 million

Why: Chief financial officer Jeff Kuo said the growth was driven by engagement rings, wedding bands, fine jewelry, with “outsized growth in fine jewelry at more accessible price points,” during a Nov. 10 conference call.

Outlook: Given “macro headwinds and the anticipated promotional environment,” the company lowered its guidance for the fourth quarter, which would mean -5%–3% growth. Sales “became more challenging” over October, said CEO Beth Gerstein on the call.

Other news:

– It recently opened two new showrooms in Baltimore and Palo Alto, Calif., bringing the total to 25.

Charles & Colvard

Period:  First quarter of fiscal 2023 (ended Sept. 30)

Sales: Down 28% to $7.4 million

Net income: It posted an $890,000 loss during the quarter, compared to a $827,000 profit the prior year.

Why: CEO Don O’Connell blamed “logistics and supply chain issues caused by Hurricane Ian” as well as consumers moving their discretionary spending to travel and experience now that COVID-19 restrictions have ended, during a Nov. 3 conference call.

Outlook: The company does not provide an outlook.

Other news:

– Moissanite sales fell 12%, while lab-grown diamonds rose 85% from a low base, despite “downward pressure” on lab-grown diamond prices.


Period: Third quarter of 2022 (ended Sept. 30)

Sales: Up 5% to 5.26 billion Danish kroner (approximately: $725 million). Comps fell 9% in the United States.

Net profit: 734 million Danish kroner (approximately $73 million)

Why: The fall in United States demand was due to the “unusual effects from last year’s stimulus checks.”

Outlook: Pandora confirmed its financial guidance of 4%–6% sales growth for the fiscal year. CEO Alexander Lacik said “it’s a bit early” to speculate about a possible global recession, during a Nov. 8 conference call.

Other news:

– It’s implementing price increases of 4% across the portfolio.

– Its new lab-grown diamond line, Diamonds by Pandora, which it’s rolling out in the United States, has been “received well” and sells for 15 times its regular price.

Watches of Switzerland

Period: Second quarter of fiscal 2023 (ended Oct. 30)

Sales: Up 21% on a constant currency basis to £374 million (approximately $440 million). U.S. revenue was £159 million (approximately $187 million), up 46% at constant currency basis.

Outlook: It’s upped its guidance for the fiscal year, despite a “more challenging” macro environment.

Photo: Getty Images

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By: Rob Bates

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