Blue Nile Q4 Sales Decline

(IDEX Online News) –Blue Nile reported net sales of $348.0 million for 2011, an increase of 4.5 percent. The online diamonds retailer however suffered from a decline in sales in the fourth quarter, sliding 2.1 percent to $112.3 million.

Net income for the year was $11.4 million, falling 19.7 percent as compared to 2010.

The leading online diamond retailer suffered from growing pains after its quick rise in popularity was followed by a period of stable growth. 2011 proved to be a tough hurdle for the company to pass with supplier on one hand criticizing the firm for its policies, while competitors on the other slowly gaining market share. The company's long time CEO Diane Irvine resigned during the year.

“The fourth quarter was challenging for Blue Nile, with weakness in demand from our high end diamond customers and some of our international markets, as well as the continued impact of inflationary pressure on commodity costs,” said CEO Vijay Talwar.

Net income for the fourth quarter totaled $4.2 million, down 31.7 percent year-over-year.

Talwar is heading a new strategy that centers on luring non-engagement customers. Engagement rings have been the mainstay of Blue Niles business in recent years.