Valentine's Day is just around the corner. In a case of perfect timing, it just happens to fall on a Saturday this year, giving lovers an entire carefree day to exchange gifts, snuggle, and celebrate at their favorite restaurants.
Unfortunately, it's also a case of imperfect timing. The economy stinks, in case you haven’t heard. With the economy in a recessionary spiral, don't be surprised if those flowers, chocolate boxes, and jewelry gifts are just a little smaller this time around.
This stinks, of course, for the suppliers of these services. This is typically the peak season for floral arrangements, candy hearts, and engagement rings, but investors in the companies making all of these things need to be braced for a real heartbreaker this month.
Let's go over a few of the companies that will be taking some hits:
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Blue Nile
(NASDAQ:NILE) : The engagement-ring specialist has been posting declines in domestic sales for several quarters now. -
Rocky Mountain Chocolate Factory
(NASDAQ:RMCF) : "Nothing says I Love You like a box of fancy Rocky Mountain Chocolates," reads the retailer's landing page today. 'Nuff said. -
United Online
(NASDAQ:UNTD) : The Internet access provider bought floral network enabler FTD to diversify its revenue stream. It'll bear fruit in the long run, but not this time. -
1-800-FLOWERS
(NASDAQ:FLWS) : I don't even need to explain this one, right? -
Build-A-Bear Workshop
(NYSE:BBW) : Custom stuffed animals are usually reserved for young kids with a love for plush, but Build-A-Bear did put out a Valentine's Day catalog this year.
Obviously, things don't end here. If Blue Nile is smarting online, then ritzy jeweler Tiffany
It's still going to be a great weekend for lovers. Love, in theory, should transcend material things. However, for the retailers and service providers trying to gauge their chances, they may as well begin plucking the "she loves me not" petal now.
Other proposals to ponder:
