Financials

Blue Nile to open 3 to 4 more stores

FinancialsFeb 06, 2016

Blue Nile to open 3 to 4 more stores

CEO Harvey Kanter said the company’s first standalone brick-and-mortar location is “exceeding expectations” and they plan to get additional stores open in the first half of 2016.

Seattle--If all goes as planned, Blue Nile will have as many as four new “webrooms” halfway into 2016, CEO Harvey Kanter revealed Thursday during the company’s third quarter earnings call.


Kanter said the company’s first standalone brick-and-mortar location, which is in the Roosevelt Field Mall in Garden City, N.Y., is “exceeding expectations” and the company is moving quickly to get three to four more stores open in the first half of 2016. The locations are yet to be determined. 

Opened in June, Blue Nile’s Roosevelt Field store, or “webroom,” is a place where customers can try on--but not buy--jewelry from Blue Nile. All purchasing still happens on the website, though Kanter said most of the transactions are executed in the store. The customers sees a piece they like in the showcase and then buys it on BlueNile.com right there using a mobile device.

This is the opposite of what Blue Nile witnessed when it had showcases in two Nordstrom stores in 2013 and 2014. Most customers there made their purchase after they left the store, he said.

Despite the reported success of Blue Nile’s first standalone brick-and-mortar location, Harvey noted during Thursday’s call that having a physical presence remains a small part of the e-tailer’s business.

“We are excited about the opportunity but we must also remind everyone it’s one location and, while meaningful as a lead indicator, is not yet a material part of our business,” he said.

Blue Nile’s announcement of a continued brick-and-mortar push comes as the e-tailer reported low single-digit sales growth in a jewelry market that is, as described by Kanter, “not particularly robust.”

Total sales grew 4 percent year-over-year in the third quarter, from $105.8 million to $110.0 million. Gross profit totaled $21.2 million, or 19.3 percent of sales, up from 17.8 percent of sales in the third quarter 2014.

U.S. engagement ring sales grew 7 percent, from $60.8 million to $65 million. The bulk of the sales came in the e-tailer’s core price points while sales in the $25,000-and-up category remained weak.

Non-engagement sales also were up 7 percent year-over-year.

International sales increased 3 percent on a constant-exchange-rate basis.

Fourth quarter sales are forecast at $158 to $168 million, exceeding the $157.4 million recorded in the fourth quarter 2014, which fell short of company expectations. For the year, Blue Nile said it expects sales to total between $488 and

$498 million, up from the $473.5 million achieved in fiscal year 2014.

Kanter said during Thursday’s call that the company is experimenting with new forms of marketing to generate awareness of its brand.

It’s launched a blog, “Cut & Polish,” and is producing man-on-the-street-type advertorials targeted at millennials as well as using more infographics, video and survey content.

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Victorian Burmese sapphire and diamond brooch
AuctionsApr 04, 2025
25-Carat Burmese Sapphire Brooch Sells for $101K

A pink topaz Belle Époque pendant-brooch and a Victorian Egyptian Revival choker were also highlights at a recent Anderson & Garland sale.

Mason Kay International Jade Summit 2025 Graphic
SourcingApr 04, 2025
Mason-Kay Jade to Hold Inaugural International Jade Summit

The event, which will co-locate with the Monterey Bay Jade Festival, will bring education sessions focused on jade to the United States.

Heather B. Moore Lily of the Valley Oval Charm
CollectionsApr 04, 2025
Piece of the Week: Heather B. Moore’s ‘Lily of the Valley’ Charm

The charm is a celebration of springtime as April showers bring May flowers with the piece’s cluster of diamond raindrops.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

Stock image of people shopping in a mall
SurveysApr 03, 2025
2025 Retail Sales to Grow More Slowly Amid ‘Uncertainty,’ Says NRF

The National Retail Federation expects retail sales growth to return to pre-pandemic levels as consumers continue to face inflation.

Weekly QuizApr 03, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Tallulah Willis’ Engagement Ring
TrendsApr 03, 2025
Tallulah Willis Imbues Antique Engagement Ring With Magic

The 4-carat, old mine brilliant-cut diamond engagement ring was co-designed by Willis and New York City-based brand Karina Noel.

158.2-carat yellow diamond from Diavik
SourcingApr 03, 2025
Canadian Mine Produces 158-Carat Yellow Diamond

Rio Tinto unearthed the diamond at its Diavik mine in Canada’s Northwest Territories.

Facets-of-Fire-Difference-You-Can-See.jpg
Brought to you by
Natural Diamonds Should Mean More

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

Buccellati Naturalia exhibition
CollectionsApr 03, 2025
Buccellati to Open Immersive Exhibition in Milan

The multisensory experience, open April 8-13, will feature the brand’s silver creations among dream-like scenes of natural landscapes.

Jewelers of America logo
Policies & IssuesApr 03, 2025
Jewelers of America to Hold Webinar on Tariffs

The virtual event will take place April 7 at 3 p.m.

Bea Bongiasca Animali Tarallo Collection Royal Blue Tang Fish “Dory”
CollectionsApr 02, 2025
Bea Bongiasca’s ‘Tarallo’ Collection Expansion Is a Zoo

The pieces in “Animali Tarallo” portray animals from stingrays to elephants through portraits and interpretations of their patterns.

Neiman Marcus Downtown Dallas store
MajorsApr 02, 2025
Neiman Marcus’ Dallas Flagship Will Remain Open, For Now

Parent company Saks Global said the iconic location will be open through the holiday season as it decides what to do with the space.

Natural color diamonds on display at Smithsonian National Museum of History
SourcingApr 02, 2025
Winston’s Collection of Natural Color Diamonds Now on Display in D.C.

Ronald Winston, son of Harry Winston, donated the diamonds to the Smithsonian National Museum of Natural History in Washington, D.C.

Punchmark
Events & AwardsApr 02, 2025
Punchmark to Host Client Workshop

The educational event will take place in Charlotte, North Carolina, this May.

Bergman Jewelers family
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 Years

The independent jeweler first opened its doors in 1888.

QVC Group Inc. logo
MajorsApr 01, 2025
QVC Group to Cut 900 Jobs in the U.S.

The layoffs come amid the TV shopping channel’s efforts to restructure and focus on live shopping through social media.

Coconut Grove Jewelry & Watch Show
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in Florida

The debut event will take place in Miami’s Coconut Grove neighborhood this fall.

The Jewelry Symposium (TJS)
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor Shortage

The roundtable will take place May 17 ahead of the trade show’s welcome dinner.

Peanuts x Monica Rich Kosann Collection Bracelets
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry Collection

The “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.

Graphic for What Do We Mean When We Say “Recycled” Gold webinar
Recorded WebinarsMar 31, 2025
Watch: What Do We Mean When We Say ‘Recycled’ Gold?

Three industry experts dive into the complexities of the material often marketed as an “ethical” alternative for metal in jewelry.

Mindi Mond Clarity Earrings
TrendsMar 31, 2025
Amanda’s Style File: Dripping in Diamonds

Diamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.

Lashbrook ring
MajorsMar 31, 2025
Lashbrook Expands Into Luxury Golf Gifts With Acquisition

The Utah-based company known for making wedding bands has acquired Doubloon Golf.

Bulgari and LVMH Watches CEO Jean-Christophe Babin
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH Watches

The longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.

Surveillance footage of robbery
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry Store

Authorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.

Nephrite and Jadeite by Heinrich Fischer, Richard W. Hughes
SourcingMar 28, 2025
19th-Century Jade Book Now Available in English

Lotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.

LÖF The Valentine Ring
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ Ring

The ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.

Eggs on a shelf
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ Outlook

The Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy