Blue Nile Sales Down 20% In October

Blue Nile reported that its sales for the month of October were down 20 percent. This comes on the heels of a nearly 3 percent decline in sales during the third calendar quarter.

After a weak third quarter, a rough start of the fourth quarter

Earlier this week, Blue Nile's management reported that sales weakened throughout the third quarter, with the most weakness coming near the end of September. Since then, sales have dramatically weakened, both in the U.S. market and in overseas markets. Management declined to provide a break-out of the October sales shortfall by market - U.S. versus overseas.

During the third quarter (July, August, September), Blue Nile's sales in the U.S. were down 7 percent, while overseas sales were up 53 percent. While the third quarter international sales gain appears to be strong, it is down from the torrid pace set in the second quarter when international revenues were up by 179 percent. International sales are now just over 10 percent of Blue Nile's total revenues.

While Blue Nile's sales were down nearly 3 percent in the third quarter, total orders declined by 6 percent. The decline in orders was offset by an increase in the average order value of +3 percent to $2,159.

IDEX Online Research will provide a full analysis of Blue Nile's third quarter over the next few days.