Charles & Colvard’s revenues up 20% in Q2

In the second quarter of 2014 ending June 30, Charles & Colvard Ltd.’s revenues rose 20 percent to $7.8 million. The company is the sole source of created moissanite and Forever Brilliant®, The World’s Most Brilliant Gem®.

Sales in the U.S. rose 37 percent on y-o-y basis, while international sales dropped 50 percent to $0.6 million.

Loose jewels sale including its whiter Forever Brilliant® moissanite, were $4.0 million for the quarter, dropping 2 percent on y-o-y basis. Finished jewellery sales rose 57 percent to $3.8 million.

Sale from its wholesale business, which accounted for 87% of sales, stood at $6.8 million from $5.9 million in the comparable quarter of last year. Direct-to-consumer businesses, Moissanite.com and Lulu Avenue®, rose 59 percent to $1.0 million.

Net loss for the second quarter was $6.2 million, compared with net loss of $0.5 million, in the year-ago second quarter. Included in the net loss for the quarter was income tax expense of $4.2 million.

“We are pleased to have achieved several financial initiatives this quarter including a 20% increase in year-over-year revenue, reducing our inventory, and increasing our cash position,” said Randy N. McCullough, Chief Executive Officer of Charles & Colvard.

In the first six months of the year, sales rose 7 percent to $13.9 million, while net loss stood at $7.3 million, compared with a net loss of $0.2 million in the year-ago comparable period. Included in the net loss was income tax expense of $4.0 million.