Charles & Colvard Reports Increased Revenue in Q1 2016

(IDEX Online News) – Moissanite manufacturer Charles & Colvard Ltd. has reported its first quarter results for the 2016 fiscal year, including a 62-percent increase in net sales from continuing operations.

The company announced that its net sales grew to $11.4 million compared to $7 million in the first quarter in the prior year.

Loose jewel net sales increased to $9.6 million in the first quarter compared to $3.8 million over the same period in the year previous – a 152-percent increase. Net finished jewelry sales saw a 45-percent decrease, falling to $1.8 million compared to $3.2 million over the same period in 2015.

Charles & Colvard’s wholesale business net sales increased to $10.1 million or 88% of sales for the quarter compared to $5.9 million, or 84% of net sales over the same period in the previous year. Its direct-to-consumer e-commerce business, Moissanite.com saw net sales increase 21 percent to $1.3 million or 12 percent of net sales compared to the same period in 2015, when it had net sales of $1.1 million or 16 percent of net sales.

The company said that its results were boosted by the $6.4 million sale (out of a total of $6.8 million) of its Forever Classic loose jewels to its largest customer, which strengthened quarterly revenue to its highest level since the fourth quarter of 2006, as well as the balance sheet. It also had the dual effect of reducing inventory and improving the company’s cash position.

“This quarter’s results reflect our renewed and sole focus on moissanite, with strong financial improvements including revenue growth, inventory reduction and an increased cash position,” said Charles & Colvard president and CEO Suzanne Miglucci.

“We are thrilled with the demand we’re seeing for Forever One™, our first colorless moissanite jewel. We believe our marketing efforts have improved brand recognition, creating increased awareness and product adoption with channel partners and consumers alike.”