Charles & Colvard e-commerce sales sparkle

By

Robin Driver

Published
Sep 8, 2018

Leading producer of lab-made moissanite jewels Charles & Colvard announced significant progress in its transition to a digital-led business on Friday, reporting soaring e-commerce gains in Q2, even as overall sales dropped and net loss widened.

 
The company’s online sales rose 49% in the period, totaling $3.3 million compared to the $2.2 million reported in Q2 2017. E-commerce sales accounted for 52% of Charles & Colvard’s total net sales in the quarter, while traditional retail channels, which saw sales drop 31% to $3.1 million in the period, now represent 48% of the total, compared to 66% in the second quarter of 2017.
 
This redistribution of sales among the company’s different retail channels reflects noticeable advances in Charles & Colvard’s strategical shift towards an emphasis on e-commerce.

“As we continue our transformation to an e-commerce driven business, we are making steady progress in our key strategic initiative to grow sales in Online Channels,” said Suzanne Miglucci, president and CEO of Charles & Colvard, in a release. “Our increased exposure through social networks, partnerships and the media is leading customers to online engagement, with customers purchasing our products across many channels, in particular, on Amazon and charlesandcolvard.com.”
 
Interestingly, finished jewelry sales also rose 54% from $1.9 million to $2.9 million in Q2 2018, while sales of loose jewels fell 27% from $4.7 million to $3.5 million, a shift which would appear to indicate promising increases in consumer demand for jewelry incorporating lab-made stones.
 
Overall net sales dropped to $6.4 million, down 4% compared to $6.6 million in the prior-year period, with the company’s net loss for the quarter totaling $0.7 million, compared to $0.4 million in the same period in the previous year.

In the first six months of fiscal 2018, Charles & Colvard’s net sales came to $13.2 million, a 7% increase compared to the $12.3 million reported in the first half of 2017. Net loss, however, expanded to $1.3 million, compared to $1.0 million in the prior-year period.
 
Over the last few months, the North Carolina-based company has launched a number of initiatives as it repositions itself as an e-commerce-driven business. The company recently signed new distribution agreements with the world’s largest retailer and a national specialty off-price retailer, and has also announced a series of corporate partnerships with a range of companies including “jewelry-as-a-service” pioneer Flont.
 
“As we prepare for the upcoming holiday season, we are encouraged by the exponentially growing interest in lab-created gemstones, especially amongst our core millennial customers,” concluded Miglucci.