In a two-day span, Canadian jewelry manufacturer and distributor D.G. Jewellery (Nasdaq: DGJL) has established a major auction presence — on two competing Web sites: uBid (Nasdaq: UBID) and Amazon.com (Nasdaq: AMZN).
On Tuesday, D.G. Jewellery announced that it was selected as the exclusive supplier for the new jewelry auction boutique on uBid. Product categories for the jewelry auction, which will launch in April, will include rings, earrings, bracelets, pendants, watches and loose stones, including diamonds and semi- precious stones.
Then today, D.G. Jewellery announced that it has been selected as a charter merchant for Amazon.com’s newly launched auction house.
“D.G. Jewellery played a key role in the development of our online auction marketplace,” said Jeff Blackburn, director of merchant services at Amazon.com.
D.G. Jewellery has also formed partnerships with Bid.com, Lycos, and the Go2Net network.
“Our company has made marvelous progress towards making jewelry available to the greatest possible audience,” said Jack Berkovits, CEO of D.G. Jewellery, who added that his company’s products “will now be available to a greater audience then ever believed possible. Having our product available through Amazon.com is a crowning achievement sure to enhance value for our shareholders.”
This might be true, but D.G. Jewellery’s stock has barely moved in early trading today, raising the question of how much of an advantage being featured on three auction sites (Bid.com, uBid and Amazon.com) really is. Many of Amazon.com’s other charter merchants are seeing spikes in their stock price today.
As for the deal with uBid, Berkovits called it “a milestone partnership” and that the company is “gearing up production capacity to meet the expected demand” on uBid.
A Rise in Earnings
In related news, D.G. Jewellery reported 1998 earnings on Monday. Net sales rose to more than $35 million (US$) from $22 million in 1997, while net income more than tripled to nearly $3.3 million. Earnings per share rose from 22 cents to 59 cents.
The company also announced that online sales in March 1999 were 100 percent higher than sales in February.