Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 32

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 32
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 profit$286,194 60.8 %$173,546 56.3 %$98,596 48.9 %Selling, general and administrative expense$97,167 20.6 %$67,531 21.9 %$39,960 19.8 %Segment operating income$183,158 38.9 %$100,306 32.5 %$53,015 26.3 %

 Year ended December 31, 2024 compared to the Year ended December 31, 2023

Net sales

Net sales for the year ended December 31, 2024 increased approximately $162.3 million or 52.7%, to $470.7 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 has experienced strong same store sales growth as it has invested in building out its inventory as well as its sales, marketing and event staff, while increasing the number of social and charitable functions it has attended. The average sale price per retail transaction increased from approximately $400,000 in the prior year to approximately $450,000 in the current year. Lugano opened its Greenwich, Connecticut location in September 2023, and its London, England salon in the second quarter of 2024, and expects to open more retail locations in the near term to further expand sales opportunities.

Gross profit

Gross profit as a percentage of net sales totaled approximately 60.8% in the year ended December 31, 2024 compared to 56.3% in the year ended December 31, 2023. Lugano has an extensive network of suppliers through which they procure high quality 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 20.6% of net sales compared to $67.5 million or 21.9%