Revenue from the retail division of Warren Buffett’s Berkshire Hathaway conglomerate rose in the second quarter, even as overall demand waned.
The unit — which includes jewelry chains Borsheims, Helzberg Diamonds and Ben Bridge Jeweler — saw a sales increase of 6% year on year to $5.01 billion, the company reported recently. Pretax earnings for retail grew 12% to $376 million.
The increase primarily stems from greater demand for new and used cars, which make up the largest portion of the company’s retail division. That division recorded a rise of 7% in the three months that ended June 30. Revenue from other businesses in the retail segment, including jewelry, grew 2.9% during the period.
Revenues from the manufacturing of consumer products, including at jewelry maker Richline Group, declined 5% to $3.48 billion, while pretax earnings decreased 1.3% to $377 million. The decrease was largely the result of business restructuring and uncertainties amid international trade policies and tariffs, which delayed shipments, causing the company to have fewer goods to sell, it said.
Meanwhile, sales at the retail segment rose 4% to $9.66 billion in the first half, and pretax earnings were up 2.5% to $669 million. Sales from the manufacturing of consumer products slipped 2.8% to $7.02 billion, with pretax earnings falling 15% to $627 million.
Image: A Helzberg Diamonds store in New Jersey. (Shutterstock)
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