The Swiss watchmaker said the company’s plans to use a new version of the Hallmark crown on jewelry would confuse consumers.
Blue Nile to Open Second Brick-and-Mortar Spot
The announcement comes as the e-tailer reports “disappointing” fourth quarter results, with U.S. engagement ring sales slipping nearly 8 percent.
Seattle--Blue Nile said Thursday that its second physical location will open in early summer at a mall in suburban New York City, and that continued expansion of its “webroom” concept is one of its focal points coming off a disappointing fourth quarter.
Net sales for the fourth quarter ended Jan. 3, 2016 totaled $150 million, down 5 percent from the fourth quarter 2014, when sales reached $157.4 million.
For the fiscal year, net sales reached $480.1 million, an increase of 1 percent.
Blue Nile’s 2014 fiscal year, however, contained an extra week, which fell in the fourth quarter. Excluding the impact of that extra week, sales were down 1 percent year-over-year in Q4 and up 3 percent on the year.
In the United States, it was the e-tailer’s engagement ring sales that were hit the hardest in the fourth quarter, falling 8 percent from $85 million to $78.4 million. For the full year, engagement ring sales totaled $269.9 million, a 1 percent increase over 2014.
Non-engagement net sales were down just 0.3 percent in the fourth quarter and rose 2 percent for the year.
International sales were up 5 percent and 10 percent on a constant-exchange-rate basis for the fourth quarter and full year, respectively.
Chairman, President and CEO Harvey Kanter said Thursday that lower selling prices for its core engagement ring products and weakness in sales at the high end contributed to what he described as a “disappointing” fourth quarter.
“As we look out on 2016, we will push harder on elements that are working: engagement ring units, wedding band attach rates, continued expansion of margin and the webroom concept,” he said.
In June 2015, Blue Nile opened its first physical location, a webroom where consumers can handle and try engagement rings and interact with a salesperson. All the buying, though, still happens online through BlueNile.com; customers do not walk out of the store with any physical merchandise in hand.
On Thursday, the company announced that it will open its second webroom at The Westchester, a mall in White Plains, N.Y. that’s about 40 miles from its first brick-and-mortar location at the Roosevelt Field Mall in Garden City, N.Y.
Both communities are suburbs of New York City.
Blue Nile said the White Plains store is the first of “up to four” physical locations it plans to open this year, reiterating what Kanter said on the e-tailer’s third quarter earnings call
Chief Merchandising Officer Julie Yoakum said the first webroom “greatly exceeded our expectations,” and that “the efficiencies of the webroom and our online model allow us to simultaneously leverage and disrupt the brick-and-mortar experience.”
Looking ahead to 2016, Blue Nile said it expects first quarter sales to total between $103 and $106 million. For the full year, net sales are expected to range between $465 and $495 million.
The Latest
The executive talked about the importance of self-purchasers and how fuel cell electric vehicles are going to fuel demand for platinum.
The Indian jeweler’s new store in Naperville, Illinois marks its 350th location, part of its ongoing global expansion plans.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
It will award a graduating high school student with about $10,000 toward a GIA diploma and an internship with the Seattle-based jeweler.
Wheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
PGI partnered with four new and seven returning designers for its annual platinum capsule collection.
Meet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
Nicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.
Karina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.
The men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.
Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”
Concerns about rising prices, politics, and global conflicts continue to dampen consumer outlook.
May’s birthstone is beloved for its rich green hue and its versatility.
Jacqui Larsson joins Opsydia with nearly two decades of experience in the industry.
Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
The “Tiffany Céleste” collection reimagines designer Jean Schlumberger’s interpretations of the universe.
The brand also created a 100-carat lab-grown diamond necklace in honor of its centennial.
Tim Schlick has been promoted from his previous position as COO.
It’s the second year for the event, slated to take place in October in Toronto.
Supplier Spotlight Sponsored by GIA
Sales will be paused while the relocation takes place over the next few months.
“SIS x MISA Denim and Diamonds” is a collaboration between the designer and celebrity stylist Misa Hylton.
The retailer is moving to a newly designed space in the same shopping center.