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Tough Economy Yielding Blue Profits At Bluenile?
Bluenile is the #1 diamond and jewelery website on the Internet. The stock traded at $80/share last year and the company reported record profits. Today Bluenile's stock price stands at $40/share and they are being impacted by the current difficult economy.
Guys are still getting engaged and buying diamond engagement rings but the the diamonds are smaller and the price tags significantly lower. What effect this will have on Bluenile's bottom line remains to be seen.
More details here: "Blue" Blue Nile
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Comments
I posted this comment on the blog above as it also referred the the rising cost of jewelry. Although this is very true, I have found that many mall based jewelers are splitting this large growth in the cost of materials with their customers. At Major Jewelers www.majorvault.com A salesman had explained that to combat the the growing costs of gold and diamonds they have simply cut their margins almost in half to remain competitive and not scare away potential customers with over the top pricing. I think having the jewelers share in the higher costs of goods with the consumers is a great way to keep jewelry affordable and more importantly the consumers interested in a market like this one.
Posted by: Terry Williams on September 9, 2008 11:44 AM