Timepiece Tuesday: Antiques, Girl’s Luxury Watch, Special Editions, An Awards Preview and a Social Media Contest

Chinese Watch Collectors Have Appetite for Vintage Pieces

Is there anything regarding luxury that the Chinese don’t want? Each season, Christie’s presents a range of 19th-century timepieces made especially for the Chinese market. This year, at the auction house’s Dec. 2 auction of watches, five 19th-century timepieces made especially for the Chinese market are coming up for sale. One, a circa-1877 gold-and-enamel pocket watch depicting three angels, is estimated to sell for between HK$320,000 and HK$480,000 (pictured). In addition, in 2005, Asia overtook the U.S. as the biggest market for Patek Philippe. Collectors are buying both new and vintage models, but there is an increasing focus on older pieces, according to the Wall Street Journal blog, Scene Asia.

Antique Clock Auction

Clocks will be a major focus in the Skinner, Inc. annual auction of Science, Technology & Clocks on November 20 in its Marlborough, Mass., gallery. Among the timepieces on the block, is a very important regulator by the Bond Shop (pictured). The Regulator No. 396 is was one of three made; No. 394 was developed for the Harvard Observatory, No. 395 for an observatory in Liverpool, England, and No. 396 for the personal use of Bond in his chronometer shop. As the director of the Harvard Observatory, Bond was one of the first to work towards establishing standard time. It is estimated at $300,000 to $500,000. Other clock highlights include a Newport tall clock, c. 1725 by William Claggett of Newport, R.I., which is the earliest American clock being offered in the sale. The piece is estimated at $60,000 to $80,000. The sale also includes a number of Willard clocks.

Frederique Constant to Introduce Luxury Girl’s Watch

The U.K. trade publication, Professional Jeweller, has learned that Frederique Constant will introduce a girl’s luxury watch at BaselWorld. “The company’s global sales director, Ralph Simons, confirmed it with a nod of his head during an interview this week,” the publication wrote. Stay tuned.

Marvin Unveils Sébastien Loeb Collection

Swiss luxury watch brand Marvin has created a new limited edition line in partnership with its ambassador, World Rally champion Sébastien Loeb. Two exclusive chronographs have been developed with Loeb and they both carry his signature. Their design is the work of two creative watchmakers: Jean-François Ruchonnet, best known for the TAG Heuer Monaco V4 and the Cabestan, and Sébastien Perret, the Neuchâtel designer who has been associated with all recent Marvin collections. The new Loeb Special Edition has a 44 mm diameter steel case flexible red horns mounted on spring suspensions, buttons coated in black PVD that resemble gear change paddles, and counters designed like dashboard instruments. The collection is limited to 777 pieces, representing Loeb’s seven world championship titles.

Grand Prix d'Horlogerie Preview

The 2010 edition of the Grand Prix d'Horlogerie de Genève will be November 18 at the Geneva Grand Théâtre. Ten timepieces have been shortlisted for each of the competition’s seven categories, including best ladies, men’s, design, jewelry, complicated, sports and the Petite Aiguille watch prize (the best timepiece under SFr5,000). There will also be four special awards, including the public prize, voted for by 5,000 participants. Brands shortlisted include Bulgari, Van Cleef & Arpels, Ralph Lauren, Audemars Piguet, Piaget, Chopard, Chaumet, Graff, Harry Winston and Chanel. The Financial Times has written a preview of the prestigious event that can be viewed here (subscription required).

Baume & Mercier In Search of ‘Very Special Reporter’

Baume & Mercier has launched a contest appealing to its social media fans. The Swiss luxury watch brand has invited its 75,000 Facebook fans to upload videos explaining their love of the brand and why they would make ideal "Very Special Reporters" at the upcoming Salon International de la Haute Horlogerie in Geneva, Jan. 17–21, the trade show for high-end watch manufacturers and buyers.

Blue Nile CEO Resigns; Q3 Sales Up 11%

Diane Irvine

Diane Irvine, Blue Nile CEO, president and director, who has been with the diamond and fine jewelry online retailer since the company was founded in 1999, has resigned, effective November 11. The announcement came just minutes before the Seattle-based company reported that third quarter sales increased 11.2 percent to $75 million. Operating income for the quarter totaled $2.9 million, representing an operating margin of 3.8 percent of net sales.

Vijay Talwar, senior VP and general manager of the company’s international business, has been appointed interim CEO. During the transition period, chairman Mark Vadon, who founded the company, said in a conference call that he will take an active role in the leadership of the company, working closely with Talwar. With the support of the Board, Vadon said he will lead the search for a permanent CEO.

“Diane has been with Blue Nile since its formation and we wish her well in her future endeavors,” Vadon said. “Diane has worked with me on the business since 1999. She has been a tremendous business partner, making countless contributions in her 12 years at Blue Nile. During Diane's tenure as CFO and CEO, the company has grown sales from $14 million to over $300 million and has become one of the world's largest fine jewelers.”

Talwar joined Blue Nile in August 2010. From November 2010 to August 2011, Talwar also served as Blue Nile's CFO. Prior to Blue Nile, he served as CEO of the William J. Clinton Foundation in India, where he provided strategic, financial and operational leadership across health care and sustainability programs in India and South Asia. Before joining the Clinton Foundation, he was at Nike, where he held a number of executive leadership positions, including COO for Nike CEMEA (Central Europe, Middle East and Africa) based in Amsterdam.

“Serving both as the head of international operations and as the company's Chief Financial Officer, Vijay has developed a deep understanding of the Blue Nile business,” Vadon said. “Further, his strong branding experience makes him ideally suited to lead the company's daily operations during this transition period.”

Blue Nile Highlights for the third quarter, ended October 3, include:

* International sales grew 54.8 percent in the quarter to $14.4 million, a record level for any third quarter in Blue Nile's history. Excluding the impact from changes in foreign exchange rates, international sales increased 46.2 percent.

* Gross profit for the quarter totaled $14.8 million, an increase of 1.4 percent from the prior year. As a percentage of net sales, gross profit was 19.8 percent compared to 21.7 percent for the third quarter of 2010.

* Selling, general and administrative expenses for the quarter were $12 million, compared to $10.4 million in the third quarter of 2010. Selling, general and administrative expenses included stock-based compensation expense of $1.6 million in the third quarter.

* At the end of the third quarter, cash and cash equivalents totaled $40.2 million.

* During the third quarter, Blue Nile repurchased 880,300 shares of its common stock for $30.9 million.

“Our record third quarter sales exceeded the high end of our guidance and was driven by solid growth in our engagement and non-engagement businesses,” Talwar said. “We also continue to experience exceptional growth in our international business, validating the value proposition we have for our consumers abroad. Overall, engagement sales growth at the high-end continues to perform very well, showcasing the depth of selection we have in the luxury category. Key to our strategy, we will continue to aggressively invest in our brand and business through marketing programs and additional merchandising assortments. “During the quarter, we repurchased $30.9 million of stock, underscoring the confidence we have in the long-term potential of our business.”

Blue Nile Sales Up 0.8%

Diamond and fine jewelry Internet retailer Blue Nile, Inc. said Thursday that net sales for the third quarter rose 0.8 percent, year-over-year, to $67.5 million, led by non-engagement jewelry. The Seattle-based company said it expects strong sales growth in the fourth quarter.

Operating income for the company increased 9.8 percent to $4.2 million. Operating income represented 6.3 percent of net sales, compared to 5.8 percent a year ago. Net income increased 7.7 percent to $2.8 million.

Non-GAAP adjusted EBITDA for the quarter totaled $6.6 million, a record third quarter level. For the trailing twelve month period ended October 3, 2010, net cash provided by operating activities totaled $26.2 million and non-GAAP free cash flow totaled $24.3 million.

“We delivered record third quarter sales, operating income, non-GAAP adjusted EBITDA, and earnings per share in what remains a challenging consumer environment. During the quarter, sales trends were uneven and reflected consumer confidence levels, which were at historic lows,” said Diane Irvine, Blue Nile CEO. "Sales trends have improved in the current quarter, and we remain focused on providing an exceptional experience to our customers. Across the business, we are gearing up for our peak holiday season.”

The company said fourth quarter net sales are expected to be between $106 million and $115 million, representing a year-over-year growth of 3 percent to 12 percent compared to fourth quarter 2009.

Highlights for the third quarter, ended October 3, include:

* International sales grew 5.7 percent in the quarter to $9.3 million, representing a record 14 percent of total sales. Excluding the impact from foreign exchange rates, international sales increased 3.4 percent. The company reported strong sales growth in its Canada and Asia/Asia-Pacific markets, while sales were weak in the U.K. and Europe because of global economic concerns combined with weaker currencies compared to the U.S. dollar.

* Gross profit for the quarter totaled $14.6 million, compared to $14.8 million a year ago. As a percentage of sales, gross profit totaled 21.7 percent. Within product categories, sales growth was relatively stronger in non-engagement jewelry as compared to the diamond engagement category.

* Selling, general and administrative expenses for the quarter were $10.4 million, compared to $10.9 million in the previous year, representing 15.4 percent of sales, compared to 16.3 percent last year.

Blue Nile: ‘Man Up’ and Say ‘I Do’

Blue Nile is fed up with mamby pamby men who are afraid of commitment. To revive the chivalrous spirit of yesteryear, the online diamond and jewelry retailer, is throwing down the gauntlet, asking, “Are You Man Enough to Say ‘I Do’?” The man who tells the ultimate story of masculinity will receive the company's assistance to do the manliest thing of all: Step up, take a knee, and earn his place by her side. The Grand Prize includes:

* A Blue Nile diamond engagement ring valued at up to $7,500,
* First-class airfare to New York City,
* Accommodations including hotel stay, dinner for two, transportation, $1,000 in spending money, and
* A proposal, live in front of the world, at the NASDAQ open on Friday, November 25.

What earns such a virile prize? How about Odysseus' quest to return to Penelope. Or, Dante's nine-circle descent to be worthy of Beatrice. Alternately, contestants may pen their own epic or post a video explaining what they would do to earn the perfect proposal. Blue Nile says examples may include:

* Wrestling a wild boar whilst wearing a ham necklace.
* Reciting the 100,000-verse Indian Sanskrit Epic, Mahabharata, backwards.
* Abstaining from an entire season of football (excepting the Super Bowl).

“Are You Man Enough to Say ‘I Do’?" is hosted on Blue Nile's Facebook page. Submissions are collected until 3:00 p.m. (PST), November 4. The top five stories will be displayed for public voting during the week of November 7. At the end of that week, the top vote earner will win the Grand Prize.

All entries are displayed anonymously to ensure those wanting to surprise their future fiancés with a proposal are still able to do so. 

Below is a tongue-and-cheek video by Blue Nile about the promotion:

Blue Nile Q2 Sales Up 5.1%, Net Income Up 1.3%

Online diamond and jewelry retailer, Blue Nile, Inc., reported Thursday that net sales increased 5.1 percent, year-over-year, to $80.5 million, a record second quarter sales level. Net income totaled $2.8 million, up 1.3 percent.

Despite the growth in revenue, increasing diamond and precious metals prices as well as weak consumer sentiment has had a negative impact on sales, particularly in its traditional bridal jewelry market. Growth for the period came from “non-engagement” jewelry, such as less-expensive colored-gemstone jewelry, and international sales, which grew 40.7 percent to 12.8 million, Diane Irvine, Blue Nile CEO said Thursday during a conference call with investors and the press. The Asia-Pacific region grew 100 percent to $5 million. Excluding the impact from changes in foreign exchange rates, international sales increased 29.7 percent.

Diamond prices increased 20 percent during the past year, Irvine said. Round diamonds experienced the largest price hike, rising 40-percent since last year. As an example, Irvine said a 1-ct. round diamond which cost $6,000 a year ago costs $9,000 today.

“While we delivered record second quarter sales and non-GAAP adjusted EBITDA, our results were impacted by rapidly rising diamond and metal prices amid a weakening consumer environment in the U.S.,” Irvine said in a statement. “Despite these external headwinds, we achieved sales growth across all product categories, including double-digit sales growth in the non-engagement category. We also experienced strong growth in our international business. In addition, we generated higher gross margins for the quarter and achieved our earnings per share stated guidance while investing in marketing and our international business.”

Operating income for the period, ended July 3, totaled $4.3 million, representing an operating margin of 5.3 percent of net sales.
Non-GAAP adjusted EBITDA for the period, ended July 3, totaled $6.9 million. For the trailing 12-month period, ended July 3, net cash provided by operating activities totaled $33.4 million compared to $24.1 million, year-over-year. For the same trailing 12-month period, non-GAAP free cash flow totaled $28.7 million.

Gross profit for the quarter grew 6 percent to $17.2 million. As a percentage of net sales, gross profit was 21.3 percent compared to 21.1 percent for the second quarter of 2010.

In its outlook, Blue Nile says that it expects net sales to be between $71.5 million and $74 million for the third quarter, ending October 2. Irvine, said during the conference call, noting the company is being cautious in its forecast because of rising prices and weak consumer sentiment. She added that the third quarter is usually the slowest month for bridal jewelry because there are no holidays during this period. But also said it is the period where the company’s margins are often the highest.

Blue Nile Chairman to Step Down As Company Posts 5th Consecutive Quarter of Double-Digit Growth

Blue Nile Starlight Diamond Eternity Ring in platinum

Blue Nile, Inc. said Thursday that year-over-year net sales increased 18.7 percent to $108 million for the second quarter ended June 30. Operating income for the quarter totaled $3.4 million, representing an operating margin of 3.2 percent of net sales. Net income totaled $2.2 million, or $0.17 per diluted share. It’s the fifth consecutive quarter of double-digit growth, the company said.

In addition, the Seattle-based online retailer that specializes in diamonds and diamond jewelry announced that its founder, Mark Vadon, will step down from his role as chairman and director of the board effective December 31. Blue Nile President and CEO Harvey Kanter will assume the role of chairman.

"Founding and being a part of Blue Nile for the past 14 years has been a great honor, and I am tremendously proud of the entire team for fostering our culture of innovation and obsession over each and every customer," Vadon said. "After working with Harvey and his leadership team over the last year and seeing the impressive growth trajectory of the business, the entire board and I feel confident passing the chairmanship to Harvey to continue to build a global consumer brand."

"Mark revolutionized the diamond industry and founded Blue Nile on the principle that there is a better way to buy diamonds and fine jewelry by offering unique online tools, high quality diamonds, and incredible values," Kanter added. "That is and will always be his legacy, and the company will continue to execute his vision."

Non-GAAP adjusted EBITDA for the quarter totaled $5.5 million. For the trailing 12-month period ended June 30, net cash provided by operating activities totaled $26.1 million compared to $18.7 million for the prior 12-month period. For the same period ended June 30, non-GAAP free cash flow totaled $22.9 million, as compared to $15.6 million for the prior.

Other second quarter highlights include:

* U.S. engagement net sales increased 22 percent to $63.9 million.

* U.S. non-engagement net sales increased 11.3 percent to $27 million.

* International net sales increased 19.1 percent to $17.1 million. Excluding the impact from changes in foreign exchange rates, international net sales increased 20.6 percent.

*Gross profit totaled $20.1 million. As a percent of net sales, gross profit was 18.6 percent compared to 18.9 percent for the second quarter of 2012.

* Selling, general and administrative expenses were $16.7 million, compared to $14.9 million in the second quarter of 2012. This figure includes stock-based compensation expense of $1.3 million for the second quarter in 2013 and 2012.

* Earnings per diluted share included stock based compensation expense of $0.07 compared to $0.06 for the second quarter of 2012.

* At the end of the quarter, cash and cash equivalents totaled $47.3 million.

In its financial guidance, Blue Nile said it expects third quarter net sales are expected to be between $96 million and $100 million; and earnings per diluted share to run from $0.13 to $0.17.

For the 2013 fiscal year, net sales are projected to be between $440 million and $470 million; and earnings per diluted share are projected at $0.75 to $0.85.

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Blue Nile Sets First Quarter Sales Record

Blue Nile, Inc. reported Thursday that net sales for the first quarter of 2011 increased 8.3 percent to $80.2 million, a first quarter record for the diamond and fine jewelry online retailer. Operating income for the quarter totaled $3.5 million. Net income totaled $2.4 million.

"We delivered record first quarter sales reflecting the strength of our consumer proposition and our relentless focus on perfecting the customer experience,” said Diane Irvine, Blue Nile CEO. “We remain focused on our key objective of building our business in the U.S. and internationally by investing in growth initiatives from product innovation and marketing to continued enhancement of the Blue Nile experience.”

First quarter financial highlights include:

* International sales grew 34.4 percent to $12.9 million, a record level for any first quarter in the company's history. Excluding the impact from changes in foreign exchange rates, international sales increased 28.1 percent.

* Gross profit for the quarter totaled $16.9 million, an increase of 7.1 percent. As a percent of net sales, gross profit was 21.1 percent compared to 21.3 percent for the first quarter of 2010.

* Selling, general and administrative expenses for the quarter were $13.4 million, compared to $12.2 million in the first quarter of 2010. This figure includes stock-based compensation expense of $1.7 million, compared to $1.8 million in the first quarter of the prior year.

The Seattle-based company in its guidance said it expects In its second quarter net sales to be between $82 and $85 million.

Blue Nile Q1 Sales Up 16.9%, Profit Exceeds $800,000

The year has begun well for Blue Nile, Inc. The online diamond and jewelry retailer said Thursday that net sales increased 16.9 percent to $97.1 million for the first quarter ended March 31, led by a near 20-percent increase in U.S. engagement jewelry sales and overall strong growth in all markets.

Net income totaled $832,000, or $0.07 per diluted share, compared with $154,000 in the first quarter of 2012. Operating income for the period totaled $1.2 million, representing an operating margin of 1.2 percent of net sales.

Non-GAAP adjusted EBITDA for the quarter totaled $3.1 million. For the trailing 12-month period ended March 31, net cash provided by operating activities totaled $21.3 million compared to $18.4 million for the same period of the prior year. For the same trailing 12-month period, non-GAAP free cash flow totaled $18.6 million.

“We are pleased to announce significant revenue growth along with expanding profitability in the first quarter of 2013,” said Harvey Kanter, Blue Nile president and CEO. “Clearly our value proposition continues to resonate with consumers, both in the U.S. and internationally.”

Other first quarter 2013 highlights for the Seattle-based company include:

* U.S. engagement net sales increased 19 percent to $55.3 million.

* U.S. non-engagement net sales increased 7.4 percent to $24.2 million.

* International net sales increase of 24.8 percent to $17.6 million. Excluding the impact from foreign exchange rates, international net sales increased 25.9 percent.

* Gross profit totaled $17.6 million. As a percent of net sales, gross profit was 18.2 percent compared to 18.4 percent for the first quarter of 2012.

* Selling, general and administrative expenses for the first quarter 2013 were $16.5 million, compared to $15.1 million in the first quarter of 2012. This includes stock-based compensation expense of $1.1 million for the first quarter of 2013 and 2012.

* Earnings per diluted share for the first the period included stock based compensation expense of $0.05 compared to $0.05 for the first quarter of 2012.

* Cash and cash equivalents totaled $40.5 million.

In its guidance Blue Nile said it expects net sales in the second quarter to be between $100 million and $105 million with earnings per diluted share are projected at $0.13 to $0.17.

The company also said that net sales for fiscal year 2013 (ending December 29) are expected to be between $440 million and $470 million with earnings per diluted share projected at $0.75 to $0.85.

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Blue Nile Q4 Sales Down 2.1%

Online diamond and jewelry retailer, Blue Nile, Inc., said Wednesday that net sales for the fourth quarter decreased 2.1 percent, year-over-year, to $112.3 million due to a decline in high-end diamond sales and a rise in commodity prices.

Operating income for the quarter, ended January 1, was $6.3 million, compared to $9.2 million in the fourth quarter of 2010. Net income for the fourth quarter totaled $4.2 million. Non-GAAP adjusted EBITDA for the fourth quarter was $8.4 million, compared to $11.6 million for the fourth quarter last year.
For the full year, Blue Nile reported net sales increase of 4.5 percent to $348 million. Operating income for the full year was $16.9 million compared to $21.3 million in the prior year.

Net cash provided by operating activities totaled $15.4 million for the year. Non-GAAP free cash flow for the year was $10.1 million.

"The fourth quarter was challenging for Blue Nile, with weakness in demand from our high end diamond customers and some of our international markets, as well as the continued impact of inflationary pressure on commodity costs,” said Vijay Talwar, Blue Nile CEO.

Talwar added that the Seattle-based company began implementing parts of a new strategy to attract customers outside of its engagement core business.

“This strategy drove positive momentum, resulting in our strongest period of customer acquisition since 2007, with new customer growth of 15 percent, Talwar said. “Additionally, in the fourth quarter we achieved order growth of 22 percent and unit growth of 30 percent compared to the fourth quarter of 2010. Growth in all three of these metrics accelerated in December and we believe these trends are important indicators of the long term growth potential of our business.”

The company also announced it plans to repurchase up to $100 million of its common stock over 24 months.

In its outlook the company said it expects first quarter net sales to be between $81 million and $84 million and earnings per diluted share to be $0.04 to $0.07.

Net sales for the year are expected to be between $384 million and $417 million or $0.70 to $0.85 per diluted share.

Financial Highlights include:

* U.S. engagement net sales for the fourth quarter and full year 2011 were $56.2 million and $186.2 million, respectively, down from the fourth quarter and full year 2010, which were $59.8 million and $189.5 million, respectively.
    
* U.S. jewelry net sales for the fourth quarter and full year 2011 were $40.4 million and $105.9 million, respectively. U.S. jewelry net sales for the fourth quarter and full year 2010 were $39.7 million and $100.1 million, respectively.
     
* International net sales for the fourth quarter and full year 2011 were $15.7 million and $55.9 million respectively. International net sales for the fourth quarter and full year 2010 were $15.3 million and $43.3 million, respectively. Excluding the impact from changes in foreign exchange rates, international sales increased 23.3% for the fiscal year.
    
* In the fourth quarter, orders, which are defined as customer orders that have been shipped, grew 22 percent from the fourth quarter of 2010.
    
* New customers, which are defined as individuals who have not made a prior purchase from Blue Nile, grew 15 percent in the fourth quarter of 2011 compared to the fourth quarter of 2010.
    
* Gross profit for the quarter totaled $23.2 million. As a percent of net sales, gross profit was 20.7 percent compared to 22 percent for the fourth quarter of 2010. Gross profit for the year totaled $72.1 million.
    
* Selling, general and administrative expenses for the quarter were $16.9 million, compared to $16.1 million in the fourth quarter of 2010. The increase is primarily related to marketing to drive new customer acquisition and new personnel to support expansion of our product assortment and order growth. Selling, general and administrative expense for the quarter includes stock-based compensation expense of $1.2 million, compared to $1.6 million in the fourth quarter of the prior year.
    
* Net income per diluted share for the quarter includes stock-based compensation expense of $0.06, compared to $0.07 for the fourth quarter of 2010.
    
* Cash and cash equivalents at the end of the fiscal year totaled $89.4 million compared to $113.3 million at the end of fiscal year 2010. 
    
* Full year 2011 capital expenditures totaled $5.4 million compared to $1.8 million for the full year 2010.

Blue Nile Reports Double-Digit Q4 and Full-Year Sales Increases

Blue Nile, Inc. said Thursday that year-over-year net sales increased 11.5 percent to $114.8 million for the fourth quarter of 2010. Operating income for the period, ended January 2, rose 11.8 percent to $9.2 million. Net income increased 13.6 percent to $6.2 million for the period.

For the full year, the online diamond and jewelry retailer said net sales increased 10.2 percent to $332.9 million. Operating income rose 10 percent to $21.3 million. Net income for the year increased 10.5 percent to $14.1 million.

“Blue Nile delivered excellent fourth quarter results, driven by the strongest holiday sales season in our history,” said Diane Irvine, CEO of the Seattle-based company. “As we look ahead in 2011, we are well positioned to capitalize on the significant growth opportunities that we see for our business in the U.S. and international markets.”

Financial highlights include the following:

* For the fourth quarter, international sales grew 30.8 percent to a record level $15.3 million. Excluding the impact from changes in foreign exchange rates, international sales increased 27.4 percent. For the full year, international sales totaled $43.3 million, a 30.4 percent increase compared to 2009 sales. Excluding foreign exchange rates, international sales increased 23.2 percent for the fiscal year.
      
* Gross profit for the fourth quarter totaled $25.3 million, which was an all-time quarterly record. As a percent of net sales, gross profit improved 30 basis points to 22 percent compared to 21.7 percent for the fourth quarter of 2009. Gross profit for the year totaled $71.9 million, which represents a record gross profit.

In its financial guidance for the first quarter of 2011, ending April 3, the company said it expects net sales to be between $76.0 million and $78.5 million. For fiscal 2011, it expects double-digit growth.