British Virgin Islands company LJ International Inc (LJI), leading jewelry manufacturer and retailer, reported financial results for the third quarter of 2008. The announced unaudited results for the period ended September 30, 2008, include reported revenues totaling $32.9 mln – that is down 12.7% from $37.7 mln in the third quarter of 2007. It was reported by the company that year-on-year revenue decline was primarily due to worsening economic conditions at the wholesale level, connected with a global slowdown in consumer spending. Net income of the BVI company for the third quarter of 2008 made $0.4 mln, or $0.02 per diluted share, – compared to $0.5 mln in the same period a year earlier.
LJI Chairman and CEO Yu Chuan Yih commented that the results showed how LJI has held its own in an increasingly harsh environment for consumer sales of luxury goods. He said it was expected that the U.S. will report little or no growth in GDP during the third quarter of the year 2008, which also reflects results from the wholesale division of the company. Despite adverse economic conditions, the ENZO chain of retail stores is continuing to report positive and improve financial results.
For the nine months ended September 30, 2008, LJI reported revenues of $94.4 mln, compared to $104.9 mln in the same period of 2007. The year-over-year drop of revenues was due largely to lower sales in the BVI company’s wholesale operations, reflecting the impact of a slowing world economy on consumer demand, particularly in the U.S. Also, net income for the first nine months of 2008 was $1.2 mln, or $0.05 per diluted share, compared to $2.3 mln, or $0.10 per diluted share in the first nine months of 2007.
The BVI company also published guidance for the fourth quarter and full year 2008, saying it expects revenues to range from $32 mln to $33 mln, compared to $47.1 mln a year earlier. For the whole year, the company expects to achieve revenues between $126 mln and $127 mln, compared to $152 mln in fiscal 2007.