Advanced Search

Blue Nile's 1Q Sales +4%, Profit -94% to $154K

U.S. Sales +3%

May 8, 2012 5:05 PM   By Jeff Miller
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Blue Nile reported that its revenue rose 3.6 percent year on year to $83.1 million for the first quarter that ended on April 1. The retailer’s international net sales rose 9.3 percent to $14.1 million, while its overall U.S. net sales grew 2.9 percent to $69 million, with engagement net sales essentially flat at $46.4 million and nonengagement net sales edging up 1 percent to $22.6 million. Blue Nile's net income plunged 94 percent to $154,000.

Cost of sales jumped 7.2 percent to $67.8 million and gross profit fell 9.7 percent to $15.3 million, while gross profit as a percentage of sales fell to 18.4 percent from 21.1 percent one year ago. Blue Nile did, however, report a 20 percent increase in new customers during the first quarter compared with 2011.

Harvey Kanter, Blue Nile's chief executive, said, ''We are pleased with our return to growth in revenue, as well as the increasing momentum we gained from the fourth quarter in attracting new customers to Blue Nile.

''In January, we launched a plan to accelerate growth in the business through increased investments in the U.S. and international markets. As expected, our financial results reflect the costs of these investments in reduced profitability versus a year ago. We are still in the early stages of executing this plan, and I am excited by the opportunities I see after my first 30 days as chief executive. We have unique and disruptive capabilities to serve the diamond engagement market and have built a brand centered on high-quality diamonds and excellent customer service,'' Kanter said. ''From this foundation, we are developing a broader non-engagement jewelry mix of compelling products in an inspirational environment. The next evolution of our business is aimed at returning to significant growth and improving the financial performance of the business for the long term.''

Tags: Blue Nile, earnings, engagement rings, international, Jeff Miller, Jewelry, sales, u.s.
Similar Articles
Birks 150Birks Gets New Omni-Channel VP
Apr 12, 2018
Canada-based jewelry retailer Birks Group has appointed Aurélie Pépion vice president of omni-channel sales and
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.