Charles & Colvard Ltd
NASDAQ:CTHR
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Charles & Colvard Ltd
Charles & Colvard Ltd. engages in the manufacture and distribution of moissanite jewels and finished jewelry featuring moissanite for sale in the worldwide jewelry market. The company is headquartered in Morrisville, North Carolina and currently employs 51 full-time employees. The company also markets and distributes Caydia lab grown diamonds and finished jewelry featuring lab grown diamonds. The firm operates through two operating segments: Online Channels segment, which encompasses digital properties components, comprises charlesandcolvard.com Website, e-commerce outlets, including marketplaces, drop-ship customers and other e-commerce customers; and Traditional segment, which consists of domestic and international distributors and retail customers. The firm sells loose moissanite jewels, loose lab grown diamonds, and finished jewelry featuring both moissanite and lab grown diamonds to distributors, manufacturers, retailers, and designers. The Company’s finished jewelry and loose moissanite jewels are sold at retail outlets and via the Internet.
Charles & Colvard Ltd. engages in the manufacture and distribution of moissanite jewels and finished jewelry featuring moissanite for sale in the worldwide jewelry market. The company is headquartered in Morrisville, North Carolina and currently employs 51 full-time employees. The company also markets and distributes Caydia lab grown diamonds and finished jewelry featuring lab grown diamonds. The firm operates through two operating segments: Online Channels segment, which encompasses digital properties components, comprises charlesandcolvard.com Website, e-commerce outlets, including marketplaces, drop-ship customers and other e-commerce customers; and Traditional segment, which consists of domestic and international distributors and retail customers. The firm sells loose moissanite jewels, loose lab grown diamonds, and finished jewelry featuring both moissanite and lab grown diamonds to distributors, manufacturers, retailers, and designers. The Company’s finished jewelry and loose moissanite jewels are sold at retail outlets and via the Internet.
Revenue Decline: Q3 revenue was $5.3 million, down 21% from last year, but management noted the decline is slowing compared to recent quarters.
Margin Erosion: Gross margin dropped to 23% from 32% last year, pressured by higher gold prices, more discounting, and increased shipping costs.
Net Loss Narrows: Net loss was $3.6 million, a significant improvement from the $8.4 million loss last year, mainly due to a large tax expense in the prior period.
Inventory Reduction: Inventory decreased 24% year-over-year as the company refined offerings and focused on core product lines.
Strong Liquidity: Ended quarter with $9.2 million in cash and access to a $5 million credit facility; management emphasized maintaining liquidity.
Digital & DTC Focus: Direct-to-consumer sales now represent 77% of total revenue, up from 70% last year, as the company invests in online channels and brand-building.
Strategic Initiatives: Company is launching new web platforms, rebranding products, and expanding marketing to capture ethical and value-oriented consumers.
