Tiffany & Co. (TIF), Signet Jewelers Ltd. (SIG), Blue Nile Inc (NILE): Wedding Season Looks Strong for These Jewelers

The online jewelry store

Blue Nile Inc (NASDAQ:NILE) estimates that it sells half of all engagement rings sold online. Blue Nile Inc (NASDAQ:NILE) is bigger than the three largest online jewelers combined. All of its high-quality diamonds are certified. After the customer chooses the diamond of choice, it can be set in their favorite design. Every order is shipped free, guaranteed and returnable within 30 days.

In the first quarter of this year, Blue Nile Inc (NASDAQ:NILE) saw strong sales for its engagement rings. Net sales for engagement rings increased 19% to $55.3 million compared to $46.4 million in the first quarter of last year. Total net sales were $97.1 million. Earnings per share came in at $0.07.

Looking forward, management expects second quarter sales to be between $100 million and $105 million. Earnings per share are expected to be $0.13 to $0.17. For the full year, expectations are for sales of between $440 million and $470 million. Last year revenues were $414.04 million, so if expectations are met that’s great for shareholders. The company has a great balance sheet with $40.52 million in cash and only $670,000 in debt.

Foolish assessment

I think the jewelry business is a great business to be in. Each company has carved out its own unique niche and has built strong brands and businesses. As the economy continues to strengthen, it makes sense that buyers will opt for a pricier engagement ring. That will benefit these three companies and boost sales and profits.

The article Wedding Season Looks Strong for These Jewelers originally appeared on Fool.com and is written by Mark Yagalla.

Mark Yagalla has no position in any stocks mentioned. The Motley Fool recommends Blue Nile. Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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