Charles & Colvard shrinks Q2 loss on lower tax expense

Morrisville, N.C. —While specialty jewelry retailer Charles & Colvard Inc. saw sales decline and many expenses rise in the second quarter of fiscal 2015, a sharp decrease in income tax expense allowed the retailer to reduce net loss to $4.05 million from $6.19 million in the prior-year period.

Net sales declined 5% to $7.48 million from $7.84 million.

There was some good news in Charles & Colvard’s direct-to-consumer businesses. The company’s direct-to-consumer home party business Lulu Avenue increased sales by 355% for the quarter and represented 17% of sales, compared with 4% of sales in the second quarter of 2014. Also, Charles & Colvard’s direct-to-consumer e-commerce business Moissanite.co, increased sales by 78% and represented 17% of sales, compared with the year-ago second quarter when it had 9% of sales.