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Archive for Blue Nile

On December 8th, I reported on what I felt was the reason for Blue Nile’s poor showing at their Q3 earnings call a month prior.  In that article, I wrote:

… Vadon says “online, there isn’t much competition for us.”  Robert Bates, from JCK Magazine, takes Vadon’s claims at face value.  But is this really the truth?

According to comScore, online jewelry sales in the third quarter have grown “over 15%” compared to the third quarter 2010.  Blue Nile’s sales growth for the same period was 11%.  So if Blue Nile has no competition online, why is it that they’re lagging so substantially behind the online jewelry industry as a whole?

Unfortunately for the investing community, nobody seems to have listened.

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Categories : Blog
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Q: Hi, I stumbled across your website when searching for a diamond for an engagement ring. I was previously looking at purchasing from Blue Nile however your opinions and further research on them has lead me to James Allen. I was wondering what your opinion is on the following diamond from James Allen. http://www.jamesallen.com/diamonds/I-VS1-Ideal-Cut-Princess-Diamond-1361953.asp

My budget is going to be around $4,000 for the diamond. Thanks for your informative website and hopefully further advice. Kind regards Read More→

Categories : Q&A
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Q: First off, your website has been tremondously helpful for me-a first time diamond buyer.

I hugely value cut and I have been looking at Blue Nile and their signature cut. Obviously, I am paying more for the signature brand. So, I used the more stringent table(60.1 to 61.9) and depth%(55 to 57) values for the signature to filter out some ideals on Blue Nile and James Allen. Am on the right track to get the shiniest diamond?

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Categories : Q&A
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Q: We are starting to look for an engagement ring and ran across your site. What great information you have avaiable! Here is the ring that we’re pretty sure we are leaning towards purchasing.

http://www.bluenile.com/build-your-own-diamond-ring?offer_id=12959&forceStep=STYLE_STEP

Any comments or concerns you have about the ring would be greatly appreciated. We didn’t know if these stones were significant enough in size that we have to worry about color matching to the center stone. Also was wondering how much we should be worried if the side diamonds are eye clean. I had a diamond previously that did have black inclusions (2 fairly small but visible) and it was always disappointing. Even though otherwise it was a beautiful diamond, those black dots always bothered me.

As for the center stone the most important thing to us is that it’s brilliant, white and sparkly. We are looking for a round cut, eye clean and somewhere between 1-1.35 ct. We don’t want to have to pay for something unneccessary, but would like a big wow factor. We realize that there is a lot left open on options for size, but we’re more concerned with the other factors that fit within these size parameters.

Also, I know you often suggest diamonds from james allen just because you can actually see what you are buying before you buy it. If that is the case would we be able to take the setting purchased from Blue Nile and separate center stone to a local jeweler to be set or do you have another suggestion?

Thanks for your site and all your help! It’s much appreciated.

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Categories : Q&A
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Jan
08

Q&A: Ideal Princess for Canadian Princess

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Q: I have been looking online for diamonds at blue nile until I read your reviews and now I am more convinced with James Allen. I just would like a little bit of help. Looking for a Princess cut, Ideal, G-H VVS2-VS1 About a carat in weight. I have looked at these two diamonds

http://www.jamesallen.com/diamonds/H-VS1-Ideal-Cut-Princess-Diamond-1356790.asp

http://www.jamesallen.com/diamonds/H-VS1-Ideal-Cut-Princess-Diamond-1346534.asp

I am thinking of putting it in this setting

http://www.jamesallen.com/diamonds/H-VS1-Ideal-Cut-Princess-Diamond-1346534.asp

Do you think that the 1.2 Carat will be too high in that setting? Any other diamonds that you can find on there?
The smaller diamond is also not available to see and I tried to get a picture e-mailed but it never came through.

The last question I have is about the Ideal cut. Is there a difference between an Ideal at James allen and a signature ideal at Blue Nile??

xxxx

P.S. I am from canada and have read about the person who was going to save the duty and get it shipped to the states and pick it up. Did they ever let you know how that went?

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Categories : Q&A
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Q: I love your site, it has helped me tremendously in my search. I’m wondering if you can provide insight on 3 online jewelers? I almost bought from James Allen but found a setting I liked better at Eternity Diamonds. I ordered it but received a call the next day that the diamond was already taken.. the guy tried to find me 2 others but they were also taken. Then I found Adiamor and found a setting and diamond I liked. I contacted them and asked a few questions. They only have a 6 month warranty which made me very leery. So, I’m wondering if you can tell me if you would recommend any of these jewelers and if a 6 month warranty would scare you away. As it stands Eternity is still looking for a diamond but haven’t found one.. Thanks for any insight you can provide.

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Categories : Q&A
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Have a look at the following interview of Mark Vadon, Founder and Executive Chairman of Blue Nile, Inc (NILE) on Bloomberg TV:

 

On November 8th, after the market closed, Blue Nile announced their Q3 financial results.  Overnight their stock plummeted from a closing price of $48.81 to an opening of $35.45 on November 9th.  The stock closed even further down the following day at $32.82.  Within 24 hours, the company had lost almost a third of its value.

Mark Vadon, Courtesy of BusinessWeek

The main driver behind the collapse was the fact that Blue Nile’s net income for Q3 2011 fell to $1.9 million from $2.8 million in Q3 2010 – this despite increasing revenues over Q3 2010 by $7.5 million (an increase of 11%).

Unfortunately, the clip above plays more like an informercial than it does a journalistic interview.  The interviewer doesn’t even mention the disappointing earnings, unfavorable outlook, or even the suddenly resigning CEO.  So what really is going on with Blue Nile?

I believe the answer is revealed not in what Vadon says in the interview above, but rather in what he doesn’t say.

At about the 4:30 mark in the video above, Vadon says “online, there isn’t much competition for us.”  Robert Bates, from JCK Magazine, takes Vadon’s claims at face value.  But is this really the truth?

According to comScore, online jewelry sales in the third quarter have grown “over 15%” compared to the third quarter 2010.  Blue Nile’s sales growth for the same period was 11%.  So if Blue Nile has no competition online, why is it that they’re lagging so substantially behind the online jewelry industry as a whole?

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Categories : News
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