‘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.”
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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.”
