Charles & Colvard, a globally recognized fine jewelry company that specializes in moissanite and lab grown diamonds, reported financial results for the second quarter-2Q Fiscal 2024, ended December 31, 2023.
“We acknowledge the recent industry shift has presented us with numerous challenges and has significantly impacted our earnings. However, we do not believe this setback will deter our progress or hinder our long-term growth and strategic initiatives. We remain committed to delivering long-term shareholder value and look forward to the opportunities that lie ahead,” said Don O’Connell, President and CEO of the Company.
Net sales of $7.9 million for the quarter, a decrease of 24% from $10.4 million in the year-ago quarter. In the Online Channels segment, which consists of e-commerce outlets including Charlesandcolvard website, moissaniteoutlet website, charlesandcolvarddirect website, madeshopping website.
Third-party online marketplaces, drop-ship retail and other pure-play e-commerce outlets, net sales of $6.7 million, representing 84% of total net sales for the quarter, compared to $7.8 million, or 76% of total net sales in the year-ago quarter.
In the Traditional segment, which consists of wholesale and brick-and-mortar customers, net sales of $1.3 million, representing 16% of total net sales for the quarter, compared to $2.5 million, or 24% of total net sales, in the year-ago quarter.
Finished jewelry net sales of $7.4 million for the quarter. Loose jewel net sales of $0.5 million for the quarter.
Gross profit was $2.9 million, or a gross margin of 36% for the quarter, compared to gross profit of $4.3 million, or gross margin of 41% in the year-ago quarter. Operating expenses increased 5% to $5.8 million for the quarter, compared to $5.5 million in the year-ago quarter.
Net loss was $2.9 million, or $0.09 loss per diluted share for the quarter, compared to net loss of $1.0 million, or $0.03 loss per diluted share, in the year-ago quarter. Weighted average diluted shares outstanding were 30.3 million for the quarter, consistent with the year-ago quarter.