LJ International is a jewelry maker and operates jewelry stores. The company designs, manufactures, markets, and sells precious and color gemstones, and diamond jewelry. LJ International distributes its products to fine jewelers, national jewelry chains, department stores, TV shopping channels, discount chain stores, and electronic and specialty retailers in North America and Western Europe. Its retail jewelry products are marketed under the ENZO brand, and the company operates almost 200 ENZO stores in the People's Republic of China, Hong Kong, and Macau.
The company recently announced results for the fourth quarter and the twelve months ended December 31, 2011. Operating revenue for the fourth quarter increased 9 percent on a year-over-year basis to $56.64 million from $45.05 million. Net profit for the quarter was $1.32 million, compared to a net profit of US$ 4.00 million for the same quarter in 2010. Basic and diluted loss per share was $0.04 and $0.04, respectively for the further quarter in 2011, compared to $0.14 and $0.14, respectively, for the fourth quarter in 2010.
Operating revenue for the full year increased 30 percent year-over-year to $182.18 million from $140.55 million in 2010. The company noted that the increase was primarily driven by the strong growth of its retail business. Net income for the full year 2011 was $10.10 million, a 22 percent decrease year-over-year. Basic and diluted earnings per share was $0.07 and $0.07, for the full year 2011 compared to $0.51 andS$0.49, respectively, for the full year 2010.
In the quarter, the company’s retail brand, ENZO, added net 20 new stores, expanding the retail network to 202 stores at the end of 2011. Comparable store sales (or same store sales) increased by 29 percent over the same period last year. For the year, ENZO added a net of 69 retail stores. Comparable store sales increased in all four quarters – by 24 percent, 61 percent, 46 percent and 29 percent year-over-year in the first, second, third and fourth quarter, respectively.
Yu-Chuan Yih, Chairman and Chief Executive Officer of LJ International, commented on the results. "We are pleased to report another solid quarter capping a year of exceptional progress.2011 was a year of continued strong momentum, driven by a robust growth in the retail business and healthy development in our wholesale platform amidst a volatile global economic environment. It was also a transformative year for us as we invested to strengthen our foothold in the China market and to enhance our operational and financial infrastructure for future growth.”
Looking ahead, the company expects that retail revenue for full year 2012 to be in the range of $135 million to $140million, representing a 20 to 25 percent year-over-year growth. Wholesale revenue is expected to maintain a similar level as that seen in 2011.