Charles & Colvard Ltd. (CTHR) reports earnings

The report was filed on April 3, 2025

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Charles & Colvard Ltd. (CTHR+2.10%) has submitted its 10-K filing for the fiscal year ended June 30, 2024.

The filing reports a decrease in net sales to $21,956,472 from $29,946,234 in the previous year. This decline is attributed to reduced consumer demand and increased competition.

Cost of goods sold decreased to $16,764,099 from $25,212,383, reflecting lower sales volumes and inventory adjustments.

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The company recorded a net loss of $14,362,957, compared to a net loss of $19,580,794 in the previous year.

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Sales and marketing expenses decreased to $12,546,547 from $13,686,049, primarily due to reduced advertising and digital marketing expenses.

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General and administrative expenses increased to $5,777,216 from $5,023,822, driven by higher professional service fees.

A legal settlement related to an arbitration with Wolfspeed resulted in expenses of $1,474,567.

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Interest income was $300,718, with interest and other expenses totaling $57,718.

The company has a working capital of $4,690,000 as of June 30, 2024, down from $17,510,000 in the previous year.

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Charles & Colvard's strategic goals for fiscal 2025 include stabilizing operations, enhancing operational efficiency, and expanding product differentiation.

The company has terminated its exclusive supply agreement with Wolfspeed and settled related arbitration for $4.77 million.

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Charles & Colvard continues to focus on developing its Online Channels segment and expanding its presence in the lab-grown diamond market.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Charles & Colvard Ltd. annual 10-K report dated April 3, 2025. To report an error, please email earnings@qz.com.