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RAPAPORT... Online diamond retailer Blue Nile's sales declined 1.3 percent year on year to $106.6 million for the second quarter that ended on June 29. The company's cost of sales fell 1.7 percent to $86.4 million. Profit fell 1.6 percent to $2.2 million or 18 cents per share. Engagement jewelry sales in the U.S. fell 4.6 percent to $60.9 million, while non-engagement sales rose 2.6 percent to $27.7 million. International sales rose 4.8 percent to $18 million, while excluding the impact from foreign-exchange rates, the increase was 6.7 percent. The value of inventory fell nearly 7 percent year on year to $32.1 million. "The diamond price environment in the second quarter materially impacted our performance. As a result, we executed strategic and targeted price changes to ensure that Blue Nile's superior value is absolutely clear to the consumer," said Harvey Kanter, the chairman and CEO of Blue Nile. "With these changes we are seeing a return to growth and when diamond prices normalize, we expect to see even greater benefits from ongoing investments we're making in the user experience."
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