(IDEX Online News) – Online jewelry retailer Blue Nile Inc. today (Tuesday) reported that sales increased 7.9 percent to $157.4 million for the fourth quarter compared to $146 million in 2013. For the fiscal year, ended January 4, 2015, sales reached $473.5 million compared to $450 million in 2013, an increase of 5.2 percent.

 

Profit dropped in the fourth quarter from 18.6 percent of net sales in the fourth quarter of 2013 to 18.1 percent in 2014. Gross profit for the fiscal year totaled $86.6 million.

 

Both the quarter and the fiscal year included an extra week. Net sales for the additional week were $5.9 million, which contributed 4.1 percent of growth for the fourth quarter 2014 and 1.3 percent for the year.

 

US engagement sales in the fourth quarter increased 7.9 percent to $85 million, compared to $78.7 million in 2013. For the year, they increased 4.1 to $266.4 million, compared to $255.8 million in 2013.

 

Sales in the extra week were estimated at $2.9 million and contributed 3.7 percent of growth for the fourth quarter 2014 and 1.1 percent for the fiscal year.

 

Non-engagement sales in the quarter increased 6.3 percent to $48.8 million, compared to $45.9 million in 2013. Non-engagement sales for the year increased 4.2 percent to $126 million, compared to $121 million for 2013.

 

US non-engagement sales for the extra week were estimated at $1.8 million, or 3.9 percent of growth for the fourth quarter of 2014 and 1.5 percent for the year.

 

International diamond and jewelry sales increased 10.9 percent in the fourth quarter to $23.6 million, compared to $21.4 million in 2013. For the year, international sales increased 10.8 percent to $81.1 million, compared to $73.2 million in 2013.

 

The additional week added an estimated $1.2 million, which contributed 5.8 percent for the fourth quarter 2014 and 1.7 percent for the year.

 

Profit dropped in the fourth quarter from 18.6 percent of net sales in the fourth quarter of 2013 to 18.1 percent in 2014. Gross profit for the fiscal year totaled $86.6 million.

 

"Our fourth quarter growth continues the positive momentum from Q3 in spite of what was a challenging quarter for many jewelry retailers," said Harvey Kanter, Blue Nile chairman, CEO and president.

 

"While these results are below our expectations, the above-industry growth demonstrates that we made progress and gained share. We remain confident in the underlying strategy; more people are realizing that buying online – and at Blue Nile specifically – provides a superior selection and industry-leading quality at an unmatched price. It's one of the reasons why that, despite a tough quarter for the industry, Blue Nile continued to grow," he added.

 

The company said it expects net sales for the first quarter of 2015 to be between $107 million and $110 million. Net sales for the full year are expected to be between $488 million and $505 million.