Charles & Colvard Q3 Revenues at Record $12.1 Million
October 18, 06
Charles & Colvard third quarter net sales increased 7 percent to $12.1 million, a record quarterly result. Gross profit margins increased to 68.9 percent from 67.5 percent in the comparable quarter of 2005.
The improvement in gross profit was primarily a result of improved production costs offsetting a 4 percent decrease in average selling price per carat. This decrease is due to a slight reduction in the size of the stone sold during the period.
Operating income for the three months ended September 30, increased 12 percent to $3.5 million from $3.1 million for the same period in 2005. Net income for the third quarter 2006 was $2.2 million.
According to Charles & Colvard CEO and president, Bob Thomas, the increase in revenues was primarily the result of increased sales to manufacturing customers in anticipation of the holiday buying season.
Charles & Colvard’s domestic sales increased 3 percent to $10.8 million and international sales increased 59 percent to $1.3 million. Total shipments of 77,300 carats during the quarter were 15 percent more than the 67,200 carats shipped in the same period of 2005. Shipments of carats in the U.S. increased 12 percent while international shipments of carats increased 57 percent.
Thomas added that progress is being made with the rollout of the Sarah Ferguson collection into Finlay locations.