Blue Nile Posts Record Q2 Revenues, Amid Rising Costs

(IDEX Online News) – Online diamond jewelry retailer Blue Nile reported record second quarter sales, posting a 5.1% increase in net sales to $80.5 million. Net income totaled $2.8 million.

Blue Nile’s international sales grew 40.7% to $12.8 million. Excluding the impact from changes in foreign exchange rates, international sales increased 29.7%.

Gross profit for the quarter totaled $17.2 million, an increase of 6% from the prior year. As a percentage of net sales, gross profit was 21.3% compared to 21.1% for the second quarter of 2010.

Operating income for the quarter totaled $4.3 million, representing an operating margin of 5.3% of net sales.

“While we delivered record second quarter sales and non-GAAP adjusted EBITDA, our results were impacted by rapidly rising diamond and metal prices amid a weakening consumer environment in the U.S.,” said CEO Diane Irvine.

“Despite these external headwinds, we achieved sales growth across all product categories, including double-digit sales growth in the non-engagement category,” she added.

Blue Nile also announced that Mark Vadon will continue in his role as Chairman of the Board of Directors but will no longer serve as Blue Nile’s Executive Chairman.