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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."
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Tags:
Blue Nile, data, Rapaport News, retail
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