Lazare Kaplan Q3 Net Sales Rise, But Profits Fall

Lazare Kaplan International reported third quarter net sales of $157.9 million, compared to $120 million in the comparable prior year period. However, net income during the period fell to $0.5 million compared to $1.1 million.

Since the start of the fiscal year, the Diamond Trading Company (DTC) Sightholder reported a 35 percent increase in net sales, rising $101.5 million to $393 million. The first nine months of the year also witnessed profitability erode from $4.6 million down to $1 million.

Gross margin during the quarter ended February 28, 2006 was $8.9 million compared to $7.8 million in the prior year period. Gross margin for the nine months period was $23.9 million compared to $25.8 million in the prior year period.

Increased year-to-date sales and gross margin for the quarter, the company says, “reflect the company's continued success expanding its global sourcing, manufacturing and distribution strategy.”

The company did not offer an explanation for the drop in profitability.