Blue Nile Q2 Net Sales up 29.9% to $56.9 Million
August 02, 06
Leading online diamond and diamond jewelry seller
The company reported a gross profit of $11.3 million, an increase of 13.6 percent, or 19.9 percent of net sales. In the second quarter of 2005, gross profit totaled 22.8 percent of net sales.
According to the company’s balance sheet, at the end of the quarter, it had inventory worth over $11.2 million.
“We delivered exceptional second quarter performance due to strong consumer demand in our core product offerings. Our aggressive pricing initiatives worked to accelerate our top-line growth,” said CEO Mark Vadon
“We believe we are strategically well positioned as a result of our category leadership and our unequaled consumer value proposition. We remain focused on optimizing the significant long-term potential we have for growth and profitability,” he added.
Blue Nile is in the midst of a major share repurchase plan. It repurchased over 1.48 million shares of its common stock, worth $47.3 million, during the quarter. Since February 2005, the company has repurchased 2,234,949 shares representing 12.6 percent of its outstanding shares.
The company's board of directors authorized the repurchase of up to an additional $50 million of the company’s common stock over the next two years. This is in addition to the $100 million share repurchase program previously authorized by the board, of which $47.2 million remains to be expended.
“Our stock repurchases during the quarter and the additional authorization that we announced today underscores our confidence in our ability to generate strong cash flows while growing our business for the future. We believe that our share repurchase program is a strategic means to create value for our shareholders,” said Vadon.