Rising Polished Diamond Prices Hit Blue Nile’s Q2 Performance

(IDEX Online) – Online diamond and fine jewelry retailer Blue Nile reported a 1.3 percent decrease on the year in net sales to $106.6 million for the second quarter ended June 29, with the company saying it was hit by higher polished diamond prices.

The e-tailer reported that U.S. engagement net sales for the second quarter decreased 4.6 percent to $60.9 million, while U.S. non-engagement net sales increased 2.6 percent to $27.7 million.

International net sales for the second quarter 2014 were 4.8 percent higher at $18.0 million.

"The diamond price environment in Q2 materially impacted our performance,” said Harvey Kanter, Chairman, CEO and President. “As a result we executed strategic and targeted price changes to ensure that Blue Nile's superior value is absolutely clear to the consumer.

"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. Without question, Blue Nile offers the highest quality products and selection, incredible service, and industry-leading value to our customers."

The company forecasts net sales of $105 million to $108 million for the third quarter, and $475 million to $490 million for the fiscal year 2014 which ends on January 4, 2015.