RAPAPORT… Revenue from the retail division of Warren Buffett’s Berkshire Hathaway surged to $5 billion in the second quarter as the US economy recovered.
The division — which includes jewelry chains Borsheims, Helzberg Diamonds and Ben Bridge Jeweler — saw sales increase 48% compared to the same period of 2020, when stores were shuttered due to Covid-19, the company reported last week. Pretax earnings for the entire retail unit more than tripled to $459 million.
“Operating results of our retail businesses were severely impacted by the pandemic beginning in March of 2020 and continuing through the second quarter of 2020,” the company noted. “Over the second half of 2020 and continuing through the first six months of 2021, revenues and pretax earnings of these businesses increased, and in certain instances, increased to levels exceeding those in pre-pandemic periods, despite ongoing supply-chain disruptions.”
Revenues from manufacturing of consumer products, which includes jewelry manufacturer Richline Group, soared 68% to $3.8 billion, while pretax earnings increased 197% to $499 million.
Image: A Borsheims store in Nebraska. (Borsheims)
Retail Sales Recover at Berkshire Hathaway
The Bottom Line
- Retail division revenue rose 48% year-over-year to $5 billion in Q2, driven by jewelry chains Borsheims, Helzberg Diamonds, and Ben Bridge Jeweler.
- Pretax earnings for the retail unit more than tripled to $459 million compared to the same quarter in 2020.
- Manufacturing revenues, including Richline Group, increased 68% to $3.8 billion, with pretax earnings up 197% to $499 million.
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