Charles & Colvard(US:CTHR)2024-05-02 22:44Financial Performance - Revenue decreased by 8% to $5.3 million compared to the quarter ended March 31, 2023[22] - Net sales from online channels segment decreased 41% to $2.0 million compared to the quarter ended March 31, 2023[21] - Net sales from traditional segment decreased 12% to $4.1 million compared to the quarter ended March 31, 2023[33] - Finished jewelry & loose jewel net sales decreased 71% to $0.4 million compared to the quarter ended March 31, 2023[22] - Gross profit was $1.2 million, with a gross margin of 23%[24] - Net loss was $(3.6) million[26] Expenses - Total operating expenses increased by 13% to $4.3 million compared to the quarter ended March 31, 2023[37] - Sales & marketing expenses increased by 13% to $1.2 million compared to the quarter ended March 31, 2023[37] Balance Sheet - Cash, cash equivalents, and restricted cash totaled $5.3 million[32] - Inventory decreased to $25.3 million[16] Strategic Initiatives & Market Conditions - The company is facing margin erosion due to rising commodity pricing, promotional pricing pressure, increased demand for Caydia lab grown diamonds, elevated shipping costs and other inflationary impacts[14] - Consumer confidence remains weak, but there's growing interest in lab-grown gemstones and responsibly-sourced jewelry[4]