Charles & Colvard Ltd (CTHR) Reports Q4 and Fiscal Year 2023 Financial Results
Charles & Colvard Ltd (NASDAQ:CTHR) reported a decrease in net sales for Q4 and fiscal year 2023
The company's cash position remained strong at $15.6 million despite macroeconomic challenges
CTHR expanded its product assortment and launched successful campaigns
The company reported a net loss for the quarter and fiscal year 2023
Charles & Colvard Ltd (NASDAQ:CTHR), a globally recognized fine jewelry company specializing in moissanite and lab-grown diamonds, released its financial results for the fourth quarter and fiscal year 2023 on October 12, 2023. Despite facing significant macroeconomic challenges and a weakened consumer outlook, the company maintained a strong cash position of $15.6 million.
Company Performance and Challenges
CTHR reported net sales of $5.6 million for the quarter, a decrease of 40% from $9.3 million in the year-ago quarter. For the fiscal year 2023, net sales decreased by 31% to $29.9 million compared to $43.1 million in the previous year. The company attributed these decreases to the challenging macroeconomic backdrop and weakened consumer outlook impacting the jewelry and gemstone industry.
Financial Achievements and Initiatives
Despite the decrease in revenues, CTHR reported several positive developments. The company expanded its assortment of new Forever One moissanite and Caydia lab-grown diamond fine jewelry styles across all categories. It also launched successful Mothers Day and Fathers Day campaigns on its website. Furthermore, the company increased revenue on its moissaniteoutlet.com owned web property by 64% for the quarter.
Financial Summary
The company reported a gross loss of $5.0 million for the quarter, compared to a gross profit of $3.8 million in the year-ago quarter. The net loss was $9.3 million, or $0.30 loss per diluted share for the quarter, compared to net income of $0.04 million, or $0.00 earnings per diluted share, in the year-ago quarter. For the fiscal year 2023, the net loss was $19.6 million, or $0.64 loss per diluted share, compared to net income of $2.4 million, or $0.08 earnings per diluted share, in the year-ago period.
Financial Position
As of June 30, 2023, the company's cash, cash equivalents, and restricted cash totaled $15.6 million, representing a decrease of $5.6 million from $21.2 million as of June 30, 2022. Total inventory decreased to $26.8 million as of June 30, 2023, down from $33.5 million as of June 30, 2022. The company had no debt outstanding as of June 30, 2023.
Despite the challenging financial results, CTHR remains optimistic about its future prospects. The company's President and CEO, Don OConnell, expressed confidence in the company's long-term business strategy and its ability to create long-term value for shareholders.
This article first appeared on GuruFocus.
