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Blue Nile 3Q Sales +4% to $110M

Nov 5, 2015 8:47 AM   By Rapaport News
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RAPAPORT... Blue Nile, an online retailer of diamonds and fine jewelry, said third quarter net sales increased 4 percent to $109.9 million year on year in the three months to October 4, with operating income up 19 percent to $3 million.

Operating margin rose from 2.4 percent to 2.8 percent of net sales. Net income rose 60 percent to $2 million, or $0.17 per diluted share, the Seattle-based group reported in a statement November 5. Gross profit dropped 66 percent to $21.2 million.

U.S. engagement net sales advanced 7 percent to $65 million, while U.S. non-engagement net sales also rose 7 percent to $25 million. International net sales were down 7 percent to $19.9 million.

Inventories at quarter’s end were $41.9 million, 27 percent higher than on the comparable date last year, it disclosed.

The company expects net sales in the fourth quarter to January 3, 2016, to be between $158 million and $168 million, the company said. It also adjusted its full-year sales guidance downwards to between $488 million and $498 million, compared to an upper-range figure of $505 million provided in its August guidance.

The board of directors approved the renewal of the company’s share repurchase program under which it is authorized to buy back up to $100 million of its common stock over the next 27 months, according to the statement.

Chairman Harvey Kanter said in the statement: “We expanded profitability while at the same time investing in initiatives to drive greater long-term growth. These initiatives, which include online and offline marketing and the ‘webroom’ concept, focus on building awareness and generating a greater level of trust for buying diamonds and fine jewelry online."
Tags: Blue Nile, data, Rapaport News, retail
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