Blue Nile Q2 2016 Sales Fall Flat

(IDEX Online News) – Online diamonds and fine jewelry retailer Blue Nile, Inc. has reported flat second quarter results for the period ended July 3, including 4.4-percent decrease in US engagement net sales.

Sales of those rings declined to $62.6 million during the quarter compared to $65.5 million over the same quarter in the previous year. US non-engagement net sales for the second quarter showed a 5.9-percent increase to $30.4 million compared to $28.7 million over the second quarter 2015.

Net sales increased marginally to $113.8 million compared to $113.7 million for the second quarter ended July 5, 2015. At the end of the first quarter in the 2016 fiscal year, the company estimated that net sales were expected to be $114 million to $117 million.

International net sales rose 6.4 percent to $20.8 million compared to $19.5 million over the second quarter in the prior year.

In the company’s earnings conference call, Blue Nile chief executive Harvey Kanter described that April and May were strong, but that there was a significant sales drop in June.

“We are still assessing what happened,” he said, but the drop-off was broad across geography and product categories, such that we can't discount macro issues, given that June was an exceptionally volatile month for the U.S. and the world.” He added that regardless of outside factors affecting Blue Nile, the overall prospect for the business is one of growth.

The company expects that its third quarter net sales will be $107 million to $111 million and that full-year net sales are estimated to be $465 million to $495 million.