Charles & Colvard Q3 Sales Soften as Company Implements New Strategy
November 01, 11
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Loose moissanite gemstone sales decreased 22 percent to approximately $2.2 million, compared with approximately $2.8 million in the corresponding period of the previous year, the company reported.
However, finished jewelry sales increased 303 percent to approximately $682,000, compared with approximately $169,000 in the corresponding period of the previous year.
"These fluctuations in quarter over quarter sales by product mix are primarily the result of the timing of restocking orders received from the Company's customer base and the Company's continued focus on expansion into the finished jewelry business through the creation of new sales channels," the firm said.
The company expects these fluctuations in product mix to continue as it executes its strategy of developing new wholesale and direct-to-consumer sales channels and expanding its finished jewelry business.
As an example, the Company's fourth quarter 2011 sales through October 26 approximate $1.7 million, comprising approximately $1 million in sales of loose gemstones and $713,000 in sales of finished jewelry. This compared with loose gemstone sales of $1.9 million and finished jewelry sales of $1.6 million for the entire fourth quarter of 2010.
"While our goal was that the year-to-date execution of our strategies would have resulted in stronger revenue in the third quarter, we are very encouraged by the apparent rebound in sales that we are seeing in the fourth quarter," stated CEO Randy N. McCullough. "This year's October net sales through October 26 are up approximately 290 percent over the full month of October 2010, and we expect total fourth quarter revenues to further benefit from our investments in new sales and marketing initiatives."