Blue Nile Posts Strong Q2 and Exit of Chairman Mark Vadon
August 04, 13
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The firm also announced that founder and Chairman Mark Vadon would be stepping down at the end of the year.
Blue Nile reported a 19-percent rise on the year in net sales to $108.0 million from $91.0 million for the period which ended June 30.
CEO Harvey Kanter reported that Blue Nile saw double-digit growth in revenue in all three of its business divisions: U.S. engagement, U.S. non-engagement and international sales.
The firm posted a 22-percent jump on last year for sales of diamond engagement rings in the United States, and it was the fifth straight quarter of double-digit growth for the category. The most powerful was noted in sales of engagement rings priced at up to $25,000.
Kanter said the retailer was "the dominant player in the online space” for engagement rings.
Meanwhile, sales in the non-engagement sector rose – up 11 percent on the year. Kanter described Mother’s Day sales as “extraordinarily successful.”
There were strong sales of diamond fashion jewelry, and Blue Nile said it planned to increase customers’ ability to create their own earrings and pendants. It is also targeting the expansion of its strong-selling Monique Lhuillier-branded engagement rings into the fashion jewelry category in time for the holiday season.
Blue Nile’s overseas sales jumped 19 percent on a constant-exchange rate basis to $17.1 million, with sales being strong in the Asia-Pacific region and Canada, but much more slack in Europe.
As for Chairman Mark Vadon’s departure, Blue Nile said it was not the result of any disagreements or matters related to the company’s policies.
Kanter, who is slated to succeed Vadon as chairman on December 31, said that Vadon was comfortable with stepping down due to his confidence in the firm's management and the company's continuing growth.
CFO David Binder said the company is predicting net sales of $440 million to $470 million for this year compared with 2012 sales of $400 million.