Berkshire Hathaway Retail Sales Slide Amid Lower Consumer Traffic 

Revenue from the retail division of Warren Buffett’s Berkshire Hathaway slipped in the second quarter as foot traffic in stores and purchase sizes decreased. 

The unit — which includes jewelry chains Borsheims, Helzberg Diamonds and Ben Bridge Jeweler — reported a sales decline of 4.5% year on year to $4.74 billion, the company reported Saturday. Pretax earnings for retail fell 23% to $336 million. 

The drop in the number of shoppers was primarily at the conglomerate’s home-furnishings business. The company also saw a decrease in the sale of used cars, which make up the largest portion of its retail division. However, that was partially offset by growth in the number of new-vehicle purchases, Berkshire noted. 

Revenues from the manufacturing of consumer products, including at jewelry maker Richline Group, grew 3.9% to $3.67 billion, while pretax earnings climbed 7% to $382 million. Sales of recreational vehicles, toys and sports products primarily drove the increase, while revenue from Richline declined, the company noted. 

Meanwhile, sales at the retail segment slipped 3% to $9.29 billion in the first half, and pretax earnings fell 21% to $653 million. Sales from the manufacturing of consumer products were up 4% to $7.23 billion, with pretax earnings advancing 17% to $737 million. 

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