Blue Nile Quarterly Sales Continue to Climb

Quarterly net sales of online diamond jewelry retailer Blue Nile  increased for the fifth consecutive quarter, soaring 23.9 percent to $42 million, compared to net sales of $33.9 million in the third quarter of 2004. If sales soared, net income rocketed in the third quarter, increasing 49.1 percent to $2.5 million.

At $0.13 per diluted share, compared to $0.09 per diluted share, in the third quarter of 2004, net income beat expectations by a penny leaving investors happy.

Non-GAAP (Generally Accepted Accounting Principles) free cash flow for the quarter was $6.2 million, compared to $3 million in the prior year, an increase of 106.3 percent. Net cash provided by operating activities for the quarter ended October 2, 2005 was $6.6 million, compared to $3.3 million in the third quarter of 2004.

The company repurchased approximately $6.5 million, or 199,975 shares, of its common stock during the quarter.

“Our third quarter financial performance reflects the strength of the Blue Nile consumer proposition," said CEO Mark Vadon. “Our results demonstrate the appeal of the Blue Nile brand, the strength and potential of our business model, and our ability to execute with excellence for our customers.”

Vadon added that he expects to achieve “record sales levels” during the upcoming holiday season.