What’s working for you?
We’re seeing strong sales across the board,” replies Vadon. “High end diamonds are doing phenomenally well. Transactions over $25,000 were up 51% year over year. And we had a $1.5 million single transaction sale earlier this quarter.”
Do people do their research elsewhere and then buy from you?
“I think that’s exactly what’s going on,” replies Vadon. “People can get really smart about (jewelry elswhere)... but we are definitely the low cost producer of this product… we can give customers tremendous value.”
Do people go to Pricescope.com to learn about diamonds and then to you?
“I think that’s exactly, right.” says Vadon. “Tiffany runs on 56% gross margins. Our gross margins are 20%.
How have you gotten over the tactile concerns?
“In the end we built a brand that people trust,” says Vadon. “Most guys know someone who has bought from us and those people feel like they got a phenomenal value. And we have tremendous quality. That’s one thing we never slip on.”
Will you be able to grow?
“It’s a huge market, the domestic jewelry market is $60 billion. This year Blue Nile should do $318 million,” explains Vadon. “So we’re just a drop in the bucket. There’s huge growth ahead of us.”
Dylan asks the guys what they think of this stock?
All the guys say NILE is a buy.