Overview
- Fourth-quarter adjusted EPS reached $6.25 on revenue of $2.35 billion, topping profit forecasts as same‑store sales slipped 0.7% and gross margin narrowed to 42%.
- Fiscal 2027 guidance calls for adjusted EPS of $8.80–$10.74 and revenue of $6.60–$6.90 billion, a range that sits at or below consensus and signals limited near‑term visibility.
- Management flagged pressure from higher gold costs, tariffs and promotions, and said James Allen will be folded into Blue Nile with jamesallen.com to be discontinued in the second quarter.
- Full‑year metrics highlighted resilience and balance‑sheet strength, including $525 million in free cash flow, $874.8 million in cash, roughly $2 billion in liquidity, $205 million in buybacks and a dividend lifted to $0.35.
- Trading was volatile around the release, with some reports showing early gains above 12% and others a roughly 7% drop, as analysts later lifted price targets on Friday (Wells Fargo to $100; UBS to $126) with shares around $88.