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Lj Intl (JADE) – Comments & Business Outlook
- Operating revenue in the third quarter was US$44.38 million, maintaining at the same level as the corresponding quarter last year. Operating revenue in the first nine months increased 11% year-over-year to US$139.34 million fromUS$125.55 million.
- Net loss in the third quarter 2012 was US$2.04 million, compared to a net income of US$1.70 million in the third quarter 2011. Basic and diluted loss per share stood at US$0.16 each, compared to US$0.03 each in the third quarter 2011.
Yu-Chuan Yih, Chairman and Chief Executive Officer of LJ International, commented, “Our third quarter results were in line with the expectations we set in previously reported financial guidance. Sales growth continued to be affected by a substantial slowdown of the Chinese economy and economic weaknesses in the US and Europe. While ENZO is well positioned to offer a wide range of colored gemset jewelry, it has been hit much harder than other jewelers that focus solely on gold or diamonds. Consequently, same store growth trends have negatively impacted us over the last few quarters. The strategic initiatives designed to improve our product mix through the addition of lower price point product ranges and the realignment of our retail stores network has yielded slow but encouraging results.
“As we continue to roll out new stores in the current market environment, it is important to note that new stores take a significantly longer time to mature, especially when expanding into new and remote cities. In spite of these challenges, the strategic expansion of our nationwide network is imperative to our long term growth. We firmly believe that the Company’s prudent approach to sustain investments in branding, marketing, and infrastructure will strengthen our leadership position in the market as we focus on building a sustainable long term business.”
2012 Guidance:
The Company maintains its view to expect retail revenue for full year 2012 to be in the range of US$130 million to US$133 million, representing a 15% to 18% year-over-year growth. Wholesale revenue is expected to maintain at a similar level as in 2011. This represents our current and preliminary view, which is subject to change.
2012-11-09 18:21:11
Source: http://geoinvesting.com/companies/jade_lj_intl/research/comments_business_outlook/0040543
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