Berkshire Hathaway Retail Sales Remain Stable in Second Quarter

Revenue from the retail division of Warren Buffett’s Berkshire Hathaway was unchanged in the second quarter amid low consumer demand and economic uncertainty.

The unit – which includes jewelry chains Borsheims, Helzberg Diamonds and Ben Bridge Jeweler – remained flat at $5.01 billion for the three months that ended June 30, the company reported recently. Pretax earnings for retail increased 2.9% to $387 million.

The company’s demand for new and used cars increased 0.5%, a low increase compared to last year when the division rose 7%. Revenue from other businesses in the retail segment remained steady primarily due to the combination of increased competition, greater economic uncertainty, and “sluggish” consumer confidence.

Revenues from the manufacturing of consumer products, including at jewelry maker Richline Group slipped 1.9% to $3.41 billion, while pretax earnings rose 12% to $423 million.

Meanwhile, sales at the retail segment slipped 0.9% year on year to $9.57 billion in the first six months, and pretax earnings were up 2% to $683 million. Sales from the manufacturing of consumer products fell 1.8% to $6.9 million, with pretax earnings growing 19% to $747 million.

Image: A Helzberg Diamonds store in Arlington, VA. (Alphama)