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Buy, Sell or Hold Blue Nile?

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  • Description

    Paul Swinand of Morningstar weighs in on luxury retail stocks and earnings.

  • Duration 3:37
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I thank you very much.

-- cabinet on the Valentine's Day we were investing in flowers yesterday today we're talk a blank.

Online jeweler Blue Nile reporting fourth quarter earnings results after the -- today.

What kind of numbers can we expect from this company joining me now from Chicago -- -- in a Morningstar yeah.

You'll forgive Blue Nile over the last year down 26%.

What's happening at this company there -- -- a rising star two years ago.

What I think investors had a very strong growth outlook for the long term of the company.

And with the you know with the growth slowing.

-- you know growth investors have pulled out of the stock.

But now it's actually a little more fairly valued I'm actually looking for a decent report from them this afternoon.

OK so let's talk about that is CEO -- cancer.

Do you think that he is part of the reason that the valuation in your opinion -- -- gotten better more attractive I mean because yes -- needed.

That even if you look at Blue Nile in -- sixty times trailing earnings -- massive flow expense Delores you from -- Well which is understandable.

Yeah and they they did have made an earnings problem some earnings -- your report.

Now I think that -- is actually introducing some new marketing programs.

They are doing some new products.

-- and other thing that people have to remember is.

-- now actually benefits went -- prices are down.

So parent present were down all last year.

They've been sort of flat if recently yeah I think that their value pricing action kind of fits with the consumer mood right now.

Just think I do want it to move on to the other big name of course this basin that is Tiffany and big news from Tiffany was same store sales -- -- For the fourth quarter they disappointed and that took the the street by surprise.

Stocks sold off.

Not got the -- over fourth quarter guidance from them what do you make -- -- because they really weren't.

What held up the luxury.

Market on the jury -- during the recession is this over.

No this is strange dynamic end -- especially diamonds and when diamond prices are up.

It seems like that that -- sparkle a little more in the the showroom window.

Is counter -- to normal economic so.

The expensive rings look at relatively cheaper to the consumer and it now or in a value play and -- denials customers are looking for deals essentially.

Well I think that that visit to syndicate all right if you if they're looking for deals then you're saying that a -- miles -- more -- by vs Tiffany.

Well it the other two -- the space and you wanna hedges because the report and the door space that is Sachs.

That is Macy's even an even -- Needham Markus George sell some 27% in 09 when really you know many names like Tiffany.

Or higher.

The department stores is that a better flyer in jewelry going forward.

Yeah what department stores in my view are more -- -- fashion.

Play for -- I don't really see them as a destination to get engagement through lawyer's statement diamond stories -- -- an important player.

But in it different at different niche.

Tiffany's for their for their diamond story is much much more engagement -- and then Blue Nile they're trying to branch out of the fashion.

But really it's you know play on on engagement and if -- value that diamond in the ring.

All right so go up if you -- but engagement ring maybe online shopping -- The -- hug go to the store it white also went and from Morningstar will stay with the numbers are today Paul thanks.

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