In the second quarter, Warren Buffett’s Berkshire Hathaway saw a decline in revenue from its retail division due to lower store visits and reduced purchase sizes. According to the company’s report on Saturday, sales for the unit, which includes jewelry chains Borsheims, Helzberg Diamonds, and Ben Bridge Jeweler, dropped by 4.5% year-on-year to $4.74 billion. Pretax earnings from retail fell by 23% to $336 million during the same period.
The decrease in foot traffic was particularly notable in Berkshire’s home-furnishings business, and there was also a decline in the sale of used cars, which constitute a significant portion of the retail division. However, this was partly offset by an increase in new-vehicle purchases, the company noted.
On the other hand, revenues from manufacturing consumer products, including operations at jewelry maker Richline Group, grew by 3.9% to $3.67 billion. Pretax earnings in this segment rose by 7% to $382 million. The growth was driven by increased sales of recreational vehicles, toys, and sports products, although revenue from Richline saw a decline.
For the first half of the year, sales in Berkshire’s retail segment decreased by 3% to $9.29 billion, and pretax earnings declined by 21% to $653 million. Meanwhile, sales from the manufacturing of consumer products increased by 4% to $7.23 billion, with pretax earnings rising by 17% to $737 million.
