Blue Nile Q3 Net Sales up 26.8 percent $53.2 Million
October 31, 06
Blue Nile reported net sales of $53.2 million in the third quarter of 2006, compared to net sales of $42 million in the third quarter of 2005, an increase of 26.8 percent. Net income in the third quarter totaled $1.8 million, compared to $2.5 million in the prior year.
The diamond and diamond jewelry online retailer also reported that net cash from operations increased 21.7 percent to $30.3 million for the trailing twelve month period ended October 1, compared to $24.9 million for the trailing twelve month period ended October 2, 2005.
Gross profit for the quarter was $10.4 million, compared to $9.2 million in the third quarter of 2005, an increase of 12.8 percent. Gross profit as a percentage of net sales was 19.6 percent compared to 22.0 percent in the third quarter of 2005.
Inventory at the end of the quarter was worth $12.675 million.
“Our business model continues to demonstrate the ability to generate exceptional results, as reflected in our third quarter financial performance,” said CEO Mark Vadon. “The growing appeal of the Blue Nile brand, along with our focused operational execution, helped drive strong revenue growth and robust earnings results. Our performance reflects the powerful combination of our unequaled consumer value proposition and our efficient cost structure.”
Blue Nile repurchased 238,635 shares of its common stock during the quarter for $7.8 million. Since February 2005, the company has repurchased 2,259,857 shares of its common stock, or 12.7 percent of shares outstanding.
Blue Nile expects full year net sales to be between $249 million and $255 million.