Blue Nile Struggles Amidst Luxury Industry Collapse

MasterCard’s SpendingPulse recently reported that the 34% decline in sales of luxury items was the highest year-on-year decline of any retail category during the holiday season and that the reduction was led by falling jewelry sales. In such conditions, it is not surprising that Blue Nile (NILE) recently announced a lackluster Q4 performance.

Tiffany vs. Blue Nile

Both Tiffany (TIF) and Blue Nile (NILE) sell diamonds. Tiffany, however, is a high end brick and mortar retailer, against Blue Nile’s scrappy online play. Let’s look at how their stocks have done, ever since Blue Nile became public in the spring of 2004: The graphs show a dramatic similarity, raising the question: Does Online

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