Supplier BulletinNov 21, 2024
Tasha R Releases 2025 Labbelle Lab Diamond Jewelry CatalogSponsored by Tasha R
FinancialsFeb 10, 2015
Blue Nile goes brick-and-mortar
The Seattle-based e-tailer plans to open a standalone store in one of the country’s “top malls” where customers can see and try on its rings, though they will still have to buy them online.
Seattle--Blue Nile is moving its showcase experiment from Nordstrom into its own storefront.
CEO Harvey Kanter announced during the company’s earnings call Tuesday morning that the Seattle-based e-tailer would be opening a standalone showcase store in one of the country’s “top malls,” though he declined to say specifically when and where.
The store will mirror the brick-and-mortar presence Blue Nile launched in recent years in two Nordstrom locations: Customers can see and try on rings from Blue Nile’s inventory and consult with one of its employees, but won’t be able to walk out of the store with a purchase. Any buying that happens in the store will be done on a tablet computer via Blue Nile’s website, and the ring will be delivered just as it is when customers order online.
“Like the Nordstrom test this also is a test from which we will learn and leverage to grow,” he said.
Though Kanter called the showcase experience in Nordstrom a “success” during Tuesday’s call, other remarks he made indicated that Blue Nile did not get everything it wanted out of the in-store experiment.
When asked by an analyst later in the call about the Nordstrom test, Kanter allowed that the bridal salon where Blue Nile’s showcase was located was not the highest traffic area. He said having its own freestanding store in a leading mall where there’s more foot traffic will provide Blue Nile with a “materially bigger” opportunity to drive brick-and-mortar shoppers onto its website and grow its revenue base.
He said Blue Nile will not keep the showcases in either Nordstrom store.
Blue Nile is not the first online-only retailer to experiment with having a brick-and-mortar presence. Amazon has done the same, as has Boston-based Gemvara.
RELATED CONTENT: What’s ailing the Internet giants
Kanter’s announcement came as the e-tailer reported disappointing fourth quarter sales.
Net sales were up 8 percent year-over-year to $157.4 million, though $5.9 million of that was due to the fiscal fourth quarter having an extra week this year. Taking out those sales, fourth quarter revenue grew only 4 percent year-over-year.
Fourth quarter net income was down slightly, from $4.9 million to $4.8 million.
“This quarter’s results are below our expectations, as the general slowdown that affected the industry also affected our performance,” Kanter said during the call.
Despite what he termed a “challenging” quarter for the jewelry industry, Blue Nile
reported record engagement ring sales in the U.S. in Q4. They increased 8 percent to $85 million, $2.9 million of which came in that additional week.
Non-engagement ring sales in the U.S. were up 6 percent to $48.8 million, $1.8 million of which were in the additional week.
International sales for the fourth quarter were up 16 percent on a constant-exchange-rate basis and including the additional week. Kanter said on the call that China is Blue Nile’s largest market outside the U.S., and that the company is opening a fulfillment center in Canada.
For the full fiscal year ended Jan. 4, Blue Nile’s net sales were up 5 percent, from $450.0 to $473.5 million. Net income declined year-over-year from $10.9 to $9.7 million.
In the second quarter Blue Nile, which already has exclusive lines with fashion designers Monique Lhuillier and Zac Posen, plans to add another exclusive line with a brand ambassador, though Kanter did not provide any more details on who he, or she, is.
More on Financials
The Latest
AuctionsNov 21, 2024
Gold Watch Gifted to Titanic Rescue Ship Captain Sells for $2MThree Titanic survivors presented him with the personalized Tiffany & Co. timepiece about a year after the tragedy.
MajorsNov 21, 2024
Harris Jewelry Ordered to Reopen Claims Portal for Refund RequestsA federal court found that the jewelry store chain violated terms of the settlement reached after it was accused of defrauding customers.
Brought to you by
Navigating Cybersecurity: Essential Guidance for JewelersFrom protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
CollectionsNov 21, 2024
Channel Elphaba in Muse’s ‘Have a Heart x Cynthia Erivo’ CollectionCynthia Erivo chose Dreams of Hope, an organization dedicated to empowering LGBTQA+ youth, as the charity for this year’s collection.
Weekly QuizNov 21, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsNov 21, 2024
Rocksbox Opens Pop-Up Store in San FranciscoThe new space was designed to evoke a warm, inviting vibe.
IndependentsNov 21, 2024
Mary Moses Kinney Is Now Part of The Edge’s Team Kinney, who spent nearly 30 years at IJO, has been hired to head Abbott Jewelry Systems’ new virtual marketplace.
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYCThis fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
CrimeNov 20, 2024
Sotheby’s to Pay $6.25M Settlement to NY State for Alleged Tax FraudThe auction house was accused of helping clients avoid paying taxes on millions of dollars’ worth of art purchased from 2010 to 2020.
Events & AwardsNov 20, 2024
Kering Debuts New Jewelry Award With Sustainability FocusThe four finalists will present their pieces at the 2025 JCK Las Vegas show.
CollectionsNov 20, 2024
Pamela Love Channels Surrealist Artists in New CollectionThe “Camera Oscura” collection showcases earring designs celebrating female Surrealist artists Claude Cahun and Leonor Fini.
Policies & IssuesNov 20, 2024
Columbia Gem House Raises $10K for Reforestation EffortsThe money will fund the planting of 10,000 trees in critical areas across Oregon, Arizona, Montana, and other regions.
Events & AwardsNov 20, 2024
The Jewelry Symposium Opens Registration, Scholarship ApplicationsThe event centered on advancing jewelry manufacturing technology will return to Detroit in May 2025.
CrimeNov 19, 2024
Woman Killed in Armed Robbery of Sacramento Jewelry StoreLocal reports identified the woman as the wife of the jewelry store owner.
AuctionsNov 19, 2024
‘A Tsar’s Treasure’ Fetches $2.9M at Sotheby’s Jewelry SaleA collection of pieces owned by Ferdinand I, the first king of modern Bulgaria, and his family, blew away estimates in Geneva last week.
MajorsNov 19, 2024
Trove Opens First US Flagship in NYCThe Australian jewelry box brand’s new West Village store will showcase new jewelers each month through its Designer in Residence program.
CollectionsNov 19, 2024
Snoop Dogg’s New Jewelry Collection Is All About Love“Lovechild” was created in partnership with Carolyn Rafaelian’s Metal Alchemist brand.
EditorsNov 18, 2024
Q&A: Helzberg CEO Brad Hampton on the Jeweler’s RebrandHampton discussed how Helzberg is improving the customer experience and why it was inspired by the company formerly known as Dunkin’ Donuts.
Policies & IssuesNov 18, 2024
Reciprocity Jewels Returns to NYC Jewelry WeekThe group will host several curated events and an exhibition of designer jewelry made with Peruvian gold traceable to the miners’ names.
CollectionsNov 18, 2024
Dolly Parton Shines in Collaboration with Kendra ScottThe collection honors the 50th anniversary of Dolly Parton’s “Love is Like a Butterfly” song, which shares a birth year with Kendra Scott.
Events & AwardsNov 18, 2024
IGI Jewelry Design Competition ReturnsThis year’s theme asks designers to take inspiration from classic fairy tales.
EditorsNov 15, 2024
Why Fine Jewelry Belongs at New York Comic ConSenior Editor Lenore Fedow makes the case for why more jewelers should be appealing to nerds at the annual event.
CollectionsNov 15, 2024
Marie Lichtenberg Battles Counterfeits with New ‘Raiz’in Scapular’ DesignsThe latest “Raiz’in” drop showcases a newly designed “Scapular” necklace and donates a portion of the proceeds to Make-A-Wish France.
WatchesNov 15, 2024
Piece of the Week: Citizen’s Commemorative Pocket WatchNo. 1 out of 100, the timepiece was created to mark Citizen’s 100th anniversary and will be auctioned off at Sotheby’s next month.
Recorded WebinarsNov 15, 2024
Watch: 10 Tips to Keep Your Jewelry Store Secure On the latest episode of “My Next Question,” two experts share best practices for store security during the holidays and year-round.
AuctionsNov 14, 2024
18th-Century Diamond Necklace Sells for Nearly $5M Sotheby’s sold the necklace, which potentially has ties to Marie-Antoinette, for $4.8 million to a woman bidding via phone.
MajorsNov 14, 2024
Saks Fifth Avenue Cancels Holiday Light DisplayInstead of its usual elaborate display, the store will illuminate its façade and frame the windows to highlight its flagship’s architecture.
