SOURCE: Melrose Jewelers

Melrose Jewelers

January 04, 2011 03:30 ET

Melrose Jewelers, a Division of Lakshmi Capital Partners, Reports Record 2010 Revenues of $10.6 Million, up 40% Year-Over-Year and 212% From 2008, Unique Visitors Grow to 3.5 Million or 1% of U.S. Population

Melrose Jewelers' Unique Visitors Grew to 3.5 Million Users, or 1% of US Population, While MelroseJewelers.com Revenues Grow 42%, MelroseJewelers.co.uk Revenues Grow 39% and International Revenues Grow 41%

LOS ANGELES, CA--(Marketwire - January 4, 2011) - Melrose Diamonds, LLC, http://www.melrosejewelers.com, a division of Lakshmi Capital Partners, LLC, a Los Angeles-based Long/Short Equity hedge fund, today reported 2010 revenues of $10.6 million and Unique Visitors of 3.5 million. 2010 revenues were up 40% year-over-year from 2009 and 212% from 2008. Unique visitors were up 135% to 3.5 million users across the Melrose Jewelers' website and distribution network.

Fiscal Year 2010 Financial Highlights:

Melrose Jewelers today reported fiscal 2010 revenues of $10.6 million, up from $7.6 million in 2009 and $3.4 million in 2008. U.S. Revenues grew 42%, U.K. Revenues grew 39%, International Revenues grew 41%. Melrose Jewelers' Unique Visitor base on its website network grew to approximately 3.5 million users or 1% U.S. market penetration. In 2010 Melrose Jewelers increased its full-time employee and consultant base to nearly 110 individuals, opening its programming office in Bangalore, India, production office in Milan, Italy, and service offices in London, U.K. and Toronto, Canada.

Krishan Agarwal, President & Chief Executive Officer, said, "Melrose Jewelers had an excellent year, posting results that balance strong growth and profitability. 2010 was a very difficult year to post growth due to ballooning underemployment in the U.S., a huge decline in discretionary spending on luxury goods, a struggling E.U. economy and declining Euro value, and volatile gold and diamond prices. Nevertheless, by concentrating on our core competencies, extreme innovation, and through implementing artificial intelligence methods on our website, we were able to overcome enormous obstacles and post impressive growth in the 2nd worst economy in history."

Kyle Mitnick, Director of Marketing, added, "Melrose Jewelers improved its competitive positioning, growing to be the #1 retailer in the U.S., U.K., Canada, and many other countries for our main brands. We increased our share of the luxury watch market, expanded our business into other types of fine jewelry, and continued to build our international business. Entering 2011, we are well positioned to realize the long-term potential of our business model and will prepare ourselves for the sale of the company to a larger entity."

Melrose Diamonds, LLC will not be issuing 2011 guidance at this time.

About Melrose Diamonds, LLC

Melrose Diamonds, LLC, http://www.melrosejewelers.com, is an online retailer of luxury watches including Rolex, Breitling, Cartier, Patek Philippe, and Panerai and custom diamond jewelry including engagement rings, earrings, necklaces, pendants and exotic custom diamond jewelry. Melrose Jewelers operates a network of international websites in the U.S., U.K. Canada, Japan, Germany, the United Arab Emirates, France, Spain , Mexico and Italy. Melrose Jewelers is the #1 retailer for its main brands in the U.S, U.K. and Canada (MelroseJewelers.com, MelroseJewelers.co.uk, MelroseJewelers.ca) Melrose Jewelers has offices in Los Angeles, London, Toronto, Bangalore, and Milan and nearly 110 employees and consultants worldwide. Melrose Jewelers' management team includes graduates from USC, UCLA, UCSD, Stanford, and U.C. Berkeley (Cal), with an average age of 26 years old across the team.

About Lakshmi Capital Partners, LLC

Lakshmi Capital Partners is a Los-Angeles based Long/Short Equity hedge fund with a Venture Capital division. Founded and managed by Krishan Agarwal, a University of Southern California MBA graduate, class of 2006, the fund specializes in shorting small-capitalization companies with an opportunistic approach. Current Venture investments include Melrose Diamonds, LLC, Sangart, LLC, a leading synthetic blood manufacturer with products in Phase III testing and with over $100 million in funding since inception, and Tocagen, LLC, a leading cancer therapeutic company with brain cancer therapeutics in Phase II testing. Its past investments include Withoutabox, LLC, sold to Amazon.com (AMZN), and Netstocks.com, sold to 123 Jump and previously funded by the United Arab Emirates Investment Fund.

Forward-Looking Statements

This press release contains forward-looking statements that include risks and uncertainties, including, without limitation, all statements related to future financial performance, estimated stock-based compensation expense, anticipated effective tax rate, anticipated capital expenditures and plans to grow our business. Words such as "expect," "anticipate," "believe," "will" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon our current expectations. Forward- looking statements involve risks and uncertainties. Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to our fluctuating operating results, seasonality in our business, our ability to acquire products on reasonable terms, our online business model, demand for our products, our ability to attract customers in a cost effective manner, our limited operating history, the strength of our brand, competition, fraud, system interruptions, our ability to fulfill orders and other risks. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Melrose Jewelers undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.