Blue Nile Revenues Jump 78%, Sees First Net Profitable Quarter

Blue Nile, the online retailer of diamonds and fine jewelry, reports net sales for the quarter were $15.4 million, an increase of 78 percent over revenues for the third quarter of 2001.

For the first time in its history, the company generated a net profit on a quarterly basis. The third quarter performance follows three consecutive quarterly operating profits.

"There’s no magic bullet in Internet retail," said Blue Nile CEO Mark Vadon. "We’re thriving in one of the worst luxury retail environments for one reason: we are obsessed with providing the hands-down best jewelry-shopping experience."

Blue Nile expects to generate a net profit for the full year 2002 on net sales of $68 to $70 million. This represents a 40 percent revenue increase compared with 2001. Blue Nile attributes its growth to its commitment to the philosophy on which it was founded - empowering consumers to control the jewelry shopping experience.

The company provides full product disclosure and in-depth education, a near matchless selection of 13,000 high-quality diamonds at prices 20 to 40 percent below traditional retail levels, and a stress-free shopping experience.

Blue Nile’s innovative online features enable consumers to accomplish shopping goals not possible in the offline world. These include the ability to create diamond jewelry pieces with its Build Your Own functionality, which allows consumers to design classically styled diamond engagement rings, diamond earrings, and diamond pendants online; and the ability to dynamically search more than 13,000 diamonds according to parameters specified by the consumer.