Charles & Colvard, a globally recognized fine jewelry company that specializes in moissanite and lab grown diamonds, reported financial results for the first quarter ended September 30, 2023 (1Q FY2024). “While we experienced continued softness in the first quarter, we remain optimistic that our strategic initiatives will help us to overcome weakened consumer spending amidst a challenging economy.

Despite industry challenges, we believe we have the product portfolio to meet and exceed customer demands during the upcoming holiday season. We remain focused on reaching broader audiences and capturing greater market share as our investments in technology begin to drive revenue,” said Don O’Connell, President and CEO of the Company.

Financial Summary for 1Q FY2024 ended Net sales of $5.0 million for the quarter, a decrease of 33% from $7.4 million in the year-ago quarter. In the Online Channels segment, which consists of e-commerce outlets including Charlesandcolvard,, moissaniteoutlet, charlesandcolvarddirect websites.

Third-party online marketplaces, drop-ship retail and other pure-play e-commerce outlets, net sales of $3.9 million, a decrease of 19% from the year-ago quarter, representing 79% of total net sales for the quarter, compared to $4.9 million, or 66% 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 $1.0 million, a decrease of 59% from the year-ago quarter, representing 21% of total net sales for the quarter, compared to $2.5 million, or 34% of total net sales, in the year-ago quarter.

Finished jewelry net sales of $4.3 million, a decrease of 22% for the quarter, compared to $5.5 million in the year-ago quarter. Loose jewel net sales decreased 64% to $0.7 million for the quarter, compared to $1.8 million in the year-ago quarter.

Gross profit was $1.9 million, or a gross margin of 39% for the quarter, compared to gross profit of $3.3 million, or gross margin of 45% in the year-ago quarter. Operating expenses increased 1% to $4.6 million for the quarter, compared to $4.5 million in the year-ago quarter. Net loss was $2.5 million, or $0.08 loss per diluted share for the quarter, compared to net loss of $0.9 million, or $0.03 loss per diluted share, in the year-ago quarter. Weighted average diluted shares outstanding were 30.4 million for the quarter, consistent with the year-ago quarter.