Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 160

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 160
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     |             |       — |     |             |   1,197 |     |             |       — |     |             |  28,602 |
| Segment operating income (loss)             |                | $                       | 183,158 |     | $           | -61,841 |     | $           | 100,306 |     |             | -54,352 |     | $           |  53,015 |     | $           | -50,193 |

<div align='center'>Year ended December 31, 2024 compared to the Year ended December 31, 2023</div>

Net sales (as restated)

Net sales for the year ended December 31, 2024 increased approximately $27.2 million or 81.9%, to $60.4 million, compared to the corresponding year ended December 31, 2023. Lugano sells high-end jewelry primarily through retail salons in California, Florida, Texas, Washington D.C., Colorado, Connecticut, and London, England, as well as via pop-up showrooms at multiple equestrian, social and charitable functions each year. In the current year period, Lugano experienced same store sales growth as it invested in building out its sales, marketing and event staff, while increasing the number of social and charitable functions it has attended. Lugano opened its Greenwich, Connecticut location in September 2023, and its London, England salon in the second quarter of 2024.

Gross profit (as restated)

Gross profit as a percentage of net sales totaled approximately 60.0% in the year ended December 31, 2024 compared to 45.9% in the year ended December 31, 2023. Lugano has an extensive network of suppliers through which they procure diamonds and gemstones, which make up a significant percentage of the cost of sales. The uniqueness of the Lugano jewelry can lead to fluctuations in margins from period to period based on what designs are sold during the period.

Selling, general and administrative expense

Selling, general and administrative expense for the year ended December 31, 2024 increased to approximately $97.2 million or 160.8% of net sales compared to $67.5 million or 203.3% of net sales for the same period of 2023. The increase in selling, general and administrative expense is primarily due to overhead expenses from newly opened locations, increased marketing spend and personnel costs.