Blue Nile, Inc. posted a 5.2 percent decline in second quarter net sales, totaling $69.9 million. Net profit of $2.84 million is a 40.55 percent year-over-year decline.

 

According to the company, the 5.2 percent decline in net sales represents a significant improvement in sales trends compared to the declines of 11.4% and 23.3% for the first quarter of 2009 and fourth quarter of 2008, respectively.

 

Gross profit for the quarter totaled $15 million. As a percent of sales, gross profit improved 100 basis points to 21.5% compared to 20.5% for the second quarter of 2008. The improvement in gross profit margin, according to the online diamond retailer, is primarily related to improved product costs as well as “our ability to capture the benefit of a declining diamond price environment.”

 

Operating income for the quarter totaled $4.3 million compared to $4.4 million in the second quarter last year.

 

International sales totaled $7.1 million in the quarter, a decrease of 12.3% from the second quarter of 2008. This decrease was driven almost entirely by foreign currency impact due to the stronger U.S. dollar versus last year. Excluding the impact from changes in foreign exchange rates, international sales declined 1.2%.

 

Blue Nile experienced, however, continued economic weakness in key markets, particularly the U.K.

 

“Blue Nile delivered excellent financial results in a challenging retail environment, with strong profitability and market share gains,” said CEO Diane Irvine.