A Celebration of Jewelry and the Business Behind the Beauty
Leibish & Co
Monday, August 9, 2010
Blue Nile Sales Up Nearly 10%
Blue Nile, the leading online retailer of diamonds and fine jewelry, reported that net sales for the second quarter increased 9.7 percent to $76.6 million. Operating income for the period totaled $4.2 million, representing an operating margin of 5.5 percent of net sales. Net income totaled $2.8 million.
Non-GAAP adjusted EBITDA for the quarter totaled $6.9 million. For the trailing twelve month period ended July 4, 2010, net cash provided by operating activities totaled $24.1 million and Non-GAAP free cash flow totaled $22.1 million.
"We delivered record second quarter sales and non-GAAP adjusted EBITDA in what remains a challenging consumer environment,” said Diane Irvine, CEO of the Seattle-based company. “While we experienced high growth throughout most of the quarter, we saw a slowdown in consumer demand in the month of June. Consumers overall began to pull back on high ticket purchases, unlike earlier in the year, based on economic concerns such as high unemployment levels and market volatility.”
Among the highlights for the second quarter are:
* International sales grew 28.2 percent to $9.1 million. Excluding the impact from changes in foreign exchange rates, international sales increased 21.1 percent.
* Total orders during the quarter increased approximately 3.5 percent to 39,407. Average ticket for the quarter increased approximately 6 percent to $1,944.
* Gross profit for the quarter totaled $16.2 million, an increase of 7.8 percent, year-over-year. As a percentage of sales, gross profit totaled 21.1 percent.
* Sales growth during the quarter was strongest in non-engagement jewelry, including diamond bands, earrings and necklaces.
In its guidance for the fiscal year ending Jan. 2, 2011, the company said it expects net sales from $325 million to $335 million, representing growth of 7.5 percent to 11 percent, year-over-year.
This blog is for those who are passionate about jewelry and watches and want to learn more about the industry. It's a place to find the best new products from all over the world and the latest news about the business of jewelry, watches and luxury. Readers gain a backstage pass to the glamour, fun and difficulties of the industry.
I am a freelance writer and editor who covers the luxury jewelry and watch industry for several publications, including Forbes.com the Financial Times, Hong Kong-based JewelleryNetAsiaand the Italian jewelry magazine, VO+. In addition, I have my own blog covering the jewelry and watch industry, Jewelry News Network.