Creator of moissanite says its finished jewellery sales grew 319%.
Charles & Colvard, manufacturer of moissanite created gemstones, has announced its results for Q1 with net sales up 40% to $4.2 million (£2.6m).
The American company posted its sales for the three months ended March 31 2012, with a sales increase of 40% with a value of about $4.2 million, compared with approximately $3 million in sales during the same period in 2011.
Loose moissanite gemstone sales decreased 4% to about $2.5 million (£1.5m), compared with approximately $2.6 million in Q1 of 2011, which it says is “due primarily to the timing of restocking orders from a number of the company’s existing wholesale customers”.
Charles & Colvard’s finished jewellery sales jumped a massive 319% to about $1.7 million (£1.05m), compared with about $410,000 (£252,753) in the corresponding period of the previous year.
However the company’s operating expenses increased $989,000, or 53%, during the first quarter of 2012 when compared to the same period of 2011. This increase, by and large due to sales and marketing expenses increasing $821,000, or 120%, was part of the company’s ongoing investments in marketing and branding initiatives to better position Charles & Colvard’s product lines in the marketplace.
Randy N. McCullough, chief executive of Charles & Colvard, said: “I’m very pleased with a $500,000 gross margin increase for the first quarter of 2012 over the first quarter of 2011.
“This demonstrates that we’re on the right track toward building profitable long-term sustainable revenue. We believe our investments in Lulu Avenue and Moissanite.com, while unfavourably impacting our bottom line today, have laid the groundwork to drive substantial revenue and profits in the near future.”
McCullough said he anticipates that the third quarter of 2012 will begin a “home party build” with fourth quarter hitting a stride to produce “meaningful revenue” for Charles & Colvard.
“In the interim, our new Forever Brilliant enhanced gemstone is getting a lot of attention within the jewellery industry. We have put together a marketing campaign targeting the upcoming JCK jewellery show in Las Vegas at the end of May, to announce the launch of Forever Brilliant,” explained McCollough.
“The company today is positioned to reap the benefits of the past two and a half years since I came on board and refocused on developing a jewellery-producing entity that leverages the moissanite gemstone.”
At present Charles & Colvard’s largest customer is US TV shopping channel Jewelry Television, for which is produces all the moissanite jewellery it sells.
The company said there are “significant opportunities” to grow its wholesale loose gemstone business due to the increased consumer awareness it expects from exposure on home shopping networks and direct consumer sales efforts.
“We completed the initial stage of branding for all the company’s entities that has yielded a refreshed look and logos,” added McCollough. “Much progress has been made this quarter, and I’m happy to report that we’re ready and moving ahead into the next chapter for Charles & Colvard.”