August 15, 2008
New York—Man Sang Holdings Inc., a purchaser and processor of Chinese cultured and freshwater pearls, saw its pearl sales slip 18.7 percent in the first quarter, mostly the result of weakness in the U.S. economy.
According to a release from Man Sang, pearl sales decreased from about $12.89 million for the three months ended June 30, 2007, to about $10.48 million for the three months ended June 30, 2008.
The decrease in net sales for pearls, the release states, was "primarily due to a decrease in market demand in the United States due to a relative weakness of the United States economy."
The earnings show that net sales in the U.S. market declined 46.4 percent in the first quarter, dropping from about $4.36 million to about $2.34 million.
Because of the drop in U.S. sales, Man Sang altered its sales strategy going forward and plans to focus on the European market, where "stronger market conditions...have mitigated the effects of weak market conditions in the United States."
The company expects pearl sales to increase in Europe over the next three months and, thereby, help the company maintain steady growth, the release states.
"Our pearl operations are geographically diverse, and we believe we are well-positioned to react to fluctuating global market conditions. We therefore expect to maintain steady growth in our pearl operations, the release states.