Blue Nile Net Profit, Sales Decline against Continued Global Economic Woes

Blue Nile’s sales in the past quarter declined to $62.4 million, sliding 11.4 percent. Gross profit as a percentage of net sales increased to 21.2 percent in the quarter ended April 5, compared with 19.8 percent for the quarter ended March 30, 2008.

Net Profits fell to $1.9 million, compared to $2.57 million, a 24.5 percent year-over-year decline.

“Consumer confidence in the United States remained at historically low levels and access to credit continued to be difficult to obtain,” the company said on Wednesday. “We believe these factors significantly impact the demand for luxury goods.”

The decrease in net sales was primarily due to a reduction in the number of orders, partially offset by an increase in the average shipment value.

Net U.S. sales totaled $56.8 million during the quarter, compared with $64.7 million last year. International sales declined by 3.4 percent to $5.6 million, impacted by the strengthening of the U.S. dollar combined with global economic weakness.