Moissanite gemstone maker Charles & Colvard is hoping to add to its growing sales momentum with a series of marketing initiatives this year.
CEO Randy McCullough discussed plans for a social media-based marketing initiative, direct sales on the company's website and support for "home trunk sales" during a conference call with analysts Wednesday and in a phone interview afterward. The company isn't disclosing how much it plans to spend on these efforts.
The Morrisville company also released fourth-quarter financials that showed that its turnaround is continuing, with 48 percent sales growth and a fourth consecutive quarter of profitability. That's a reversal from the losses it struggled with in 2008 and 2009, which triggered a management overhaul and a cost-cutting effort that included eliminating jobs.
Charles & Colvard has hired a marketing firm to oversee its social media initiative, which will encompass "a series of projects that we believe will increase sales and market awareness," McCullough said.
Those efforts, which will be phased in during the coming months, will include every thing from reaching out to bloggers who focus on the jewelry market to monitoring what people say about moissanite online and interacting with them as necessary.
McCullough contrasted the social media effort with the $39 million that the company spent on traditional advertising between 2004 and 2009.
"That resulted in less than 8 percent consumer awareness," he said. "I don't think anyone wants us to do more of the same."
The company also plans to sell finished jewelry products directly to consumers at its moissanite.com website later this year. It will conduct a controlled beta test before it opens sales to the public.
"While I would like for the new moissanite.com website to be available immediately, it is much more important for it to be state-of-the art and present Charles & Colvard brands in the most positive manner," McCullough said.
The company anticipates testing Tupperware-like parties hosted by independent contractors who are paid on commission in the third quarter.
Charles & Colvard plans to hire a vice president to run that initiative plus an assistant or two, but doesn't anticipate a major hiring spree this year. Charles & Colvard has 25 workers.
In the fourth quarter, sales totaled $3.5 million, up from $2.4 million a year ago. Profit for the quarter totaled $452,266, versus a year-ago loss of $524,714.
The higher sales in the fourth quarter include a rise in orders of loose moissanite gemstones from a "growing customer base" as well as expanded orders for finished pieces of jewelry that feature moissanite, the company said.
For the full year 2010, sales increased 53 percent to $12.7 million. Its profit for the year totaled $1.6 million, versus a loss of $3.6 million in 2009.
Charles & Colvard shares closed Wednesday at $3.97, up 16 cents. A year ago the company's shares were trading at $1.43.
