Connect with us

Headlines

Jewelry Company Boasts ‘Remarkable Turnaround’ After Predictions of Bankruptcy

mm

Published

on

‘No hard feelings,’ says the CEO.

DGSE Companies Inc. announced that it has achieved a “remarkable turnaround,” posting its fourth consecutive profitable quarter and an annual profit of $1.8 million.

The Dallas-based company, a wholesaler and retailer of jewelry, diamonds, fine watches and precious metals, noted in a press release that Barron’s magazine last year ranked it as the second-most-likely retailer in the U.S. to go bankrupt. That list was based on the views of S&P Global Market Intelligence analysts.

In a tongue-in-cheek comment, John Loftus, CEO of DGSE, said he’s waiting to hear back from Barron’s.

“No hard feelings,” Loftus said. “We’ll make them a great deal, too.”

The jewelry and bullion company reported revenue of $14.4 million for the three months ending Dec. 31. It posted a net profit of $750,000.For the year, revenue was $62 million, up from $48 million in 2016. The year’s net profit of $1.8 million reversed several years of losses.

“We’re proud to have returned to profitability by changing company strategy and returning to our roots – buying and selling jewelry and timepieces at exceptional prices,” said Loftus, who took over at DGSE in December 2016. “We’re bullish on the future of brick-and-mortar stores, and we’re proving it every day.”

Advertisement

DGSE operates four Dallas Gold & Silver Exchange stores in the Dallas/Fort Worth area and another, Charleston Gold & Diamond Exchange, in South Carolina. 

“Although the names denote the precious metals that many clients buy and sell as part of their portfolios, they are also high-end jewelry stores, with collections including overstocks and closeouts from luxury retailers and venerated names like David Yurman, Tiffany & Co. and Cartier,” the release noted.

One key to the turnaround, Loftus said, has been the company’s strategy in an era when online shopping is eroding sales in many traditional retail stores.

“Our prices are extremely competitive, but our great staff also offers an unrivaled customer experience,” he said. “We’re an information resource for our clients, we bring transparency to all our transactions, and we offer great value whether you’re buying, selling or trading.

“That builds lasting relationships for us. And there is still no substitute for seeing and holding a diamond or a necklace or a Rolex, and taking it home the same day – especially when you can’t believe the great deal.”

Advertisement

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

Promoted Headlines

Most Popular