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Blue Monday At Blue Nile.
Online diamond retailer Blue Nile reported that Profits fell 28 percent to $1.8 million and sales rose 27 percent to $53.2 million during its third quarter, which ended October 1, 2006.
Blue Nile attributed the drop in profits to it's competitive price discounting and increased cost of the precious metals, Gold and Platinum for it's Jewelry and Diamond Engagement Rings.
Piper Jaffrey has downgraded the stock to 'Underperform'.
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Comments
Usually when sales rise, so should earnings. I doubt the cost of metals really affected their earnings for that quarter since diamond jewelry has very little amount of metal. You're paying for the stone, the metal shouldn't be a big factor.
Posted by: Loose Diamonds on November 1, 2006 6:45 PM
They should. But not when prices have been significantly discounted in order to stay competitive with other Internet diamond dealers, as is the case here.
Posted by: Barry Gutwein on November 1, 2006 7:17 PM
but they are not really competitive when being compared to the not public diamond websites like Excel Diamonds, it is quite obvious in the price search engines like the one u can find on diamondring.com.
Posted by: Loose Diamonds on April 8, 2007 5:29 PM