CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
FinancialsOct 29, 2014
Blue Nile forecasts 19 percent growth in Q4
Executives for Blue Nile said Thursday that they anticipate fourth quarter sales could grow as much as 19 percent due to the lowering of engagement ring prices and the addition of brands.
Seattle--Executives for Blue Nile said Thursday that they anticipate fourth quarter sales could grow as much as 19 percent due to the lowering of engagement ring prices and the addition of brands.
Following a weak second quarter in which rising diamond prices hurt sales, engagement ring sales grew 5 percent year-over-year in the third quarter ended Sept. 28, from $57.9 million to $60.8 million.
CEO Harvey Kanter said during the company’s earnings call Thursday morning that the e-tailer took steps to ensure that, “no matter what, Blue Nile’s superior value is absolutely clear.”
Several times during the call, executives mentioned, but did not elaborate on, the company’s growing “data science program,” figures gathered over its 15-year history that tell Blue Nile how its customers respond to price changes, and guides them on how to adjust prices in a way that retains as many as possible.
Chief Financial Officer David Binder said while the prices for smaller stones remain elevated, diamond price inflation overall has abated for the time being. Helping to push retail prices down was an increase of supply on the market as the industry’s grading labs work through their backlogs.
Binder said Blue Nile had more than 200,000 diamonds to offer at one point during the quarter, topping its previous high of 160,000. He added that more suppliers are wanting to list with Blue Nile to “get superior turn for their inventory.”
Outside of engagement rings, sales were not as strong, falling 2 percent year-over-year from $23.9 to $23.5 million.
Despite the drop, Blue Nile executives see fashion jewelry as being a main contributor to sales in the coming fourth quarter due to the addition of bridal and fashion jewelry lines created by well-known designer Zac Posen, the expansion of fashion jewelry offerings by Monique Lhuillier and the just-announced addition of Sloane Street and Lisa Jenks to the Designer Collective, which has been weak thus far.
All this product will be coming online in the next two weeks, before Black Friday.
Total sales for Blue Nile, including international sales, grew 7 percent year-over-year from $98.9 to $105.8 million. Gross profit totaled $18.9 million, or 18 percent of sales, compared with $18.7 million in the third quarter 2013, which was 19 percent of sales.
During Thursday’s call, Kanter noted that more than half the retailer’s website traffic comes from a mobile device now. Blue Nile
sold an $187,000 diamond to a customer via a smartphone during the quarter.
Company executives are bullish on the fourth quarter, anticipating sales of $159 to $174 million, up 9 to 19 percent over last year. Fourth quarter sales in 2013 grew 7 percent year-over-year, though Blue Nile’s fourth quarter includes an extra week this year.
For the full year, Blue Nile forecasts that sales will grow between 6 and 9 percent, reaching between $475 and $490 million.
More on Financials
The Latest
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research HospitalThe money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
Weekly QuizApr 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
SourcingApr 18, 2024
Diamond Trade Remains Cautious Amid Economic UncertaintyDe Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Supplier BulletinApr 18, 2024
Discover History’s Hidden Gems at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry & Watch Show
WatchesApr 18, 2024
Watch E-tailer Collectability Hires Kelly YochThe Patek Philippe expert will serve as personal curator for the brand-focused company.
WatchesApr 18, 2024
TAG Heuer Opens Its Largest Standalone Boutique at SeaThe 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
Policies & IssuesApr 17, 2024
NDC Prevails in U.K. Case Over Lab-Grown Diamond AdvertisingNDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
Events & AwardsApr 17, 2024
And the 2024 Winner of the Shipley Award Is … John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
MajorsApr 17, 2024
Stuller’s B&D Opens New HeadquartersB&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
CollectionsApr 16, 2024
Akaila Reid Launches ‘Eat Cake’ CollectionIt’s ultra-feminine and filled with gold, pearls, and soft pastels.
MajorsApr 16, 2024
Loudr Adds 2 DirectorsEmily Highet Morgan and Emily Bennett have joined the agency’s team.
MajorsApr 16, 2024
Stuller Releases First Lab-Grown Diamond Jewelry CatalogIts updated book for mountings is also now available.
SourcingApr 16, 2024
Karen Rentmeesters Takes Over as Interim CEO of AWDCShe has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
TechnologyApr 15, 2024
Judge Rules Jeweler’s Lawsuit Against PNC Bank Can Move ForwardJoyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
IndependentsApr 15, 2024
Alfred W. DeScenza of DeScenza Diamonds Dies at 95He is remembered by loved ones for his loyalty, integrity, and kindness.
AuctionsApr 15, 2024
Madeleine K. Albright Jewelry, Pins Coming to AuctionHosted by Freeman’s | Hindman, the sale will take place May 7-8.
AuctionsApr 15, 2024
All of Sotheby’s ‘Rough Diamonds’ Sold in Less Than an HourThe auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
Events & AwardsApr 15, 2024
10 Can’t-Miss Sessions at AGS Conclave 2024From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
Recorded WebinarsApr 12, 2024
Watch: What Jewelers Need to Know About InsuranceFrom cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
