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Blue Nile’s 4Q Sales -5%, Engagement Sales -8%

Feb 11, 2016 9:43 AM   By Rapaport News
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RAPAPORT... Blue Nile reported net sales fell 4.8 percent year on year to $150 million in the fourth quarter that ended January 3 because of continued weakness in high-ticket purchases and foreign currencies. Selling prices for core engagement products slipped.

U.S. engagement net sales declined 7.7 percent to $78.4 million, while U.S. non-engagement net sales retreated 0.3 percent to $48.7 million, the company said in a statement February 11.

Profit rose 4.3 percent as the cost of sales was cut 6.2 percent to $120.9 million. Earnings per diluted share grew 4.9 percent to $0.44. The online jewelry seller announced a first-ever dividend of $0.70 per share.

"While sales were disappointing, we delivered an eight-year high in earnings per share,” said Harvey Kanter, Blue Nile’s chairman, chief executive officer and president. “Revenue growth was challenged by continued weakness from high-ticket purchases and foreign currencies, as well as lower selling prices for our core engagement products.

“In spite of these challenges, we sold a record number of engagement rings, expanded gross margin rate, and drove success in our new Webroom. As we look out on 2016, we will push harder on elements that are working: engagement ring units, wedding band attach rates, continued expansion of margin and the Webroom concept."

During the full fiscal year to January 3, net sales advanced 1.4 percent to $480.1 million and profit increased 8.3 percent to $10.5 million. U.S. engagement sales increased 1.3 percent to $269.9 million.
Tags: Blue Nile, online retail, online sales, Rapaport News, retail
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