Jewelry retailer Blue Nile sees profit plunge 8.8%

By

Dani Greene

Published
Aug 11, 2016

The U.S. diamond and fine jewelry retailer saw net sales inch forward to $113.8 million in the second quarter, up from $113.7 million year on year, despite a dive in engagement ring sales, affecting profits.

The Seattle-based firm saw profits slide 8.8% to $2.1 million, and diluted net income per share declined to $0.18 from $0.20 a year ago.

Domestic engagement-ring sales for the second quarter decreased 4.4% to $62.6 million, while non-engagement ring sales gained 5.9% in the U.S.

Blue Nile's international segment offset the local jewelry market with sales increasing 6.4% to $20.8 million, the firm confirmed in a statement.

"Blue Nile continues to reimagine the retail experience by bridging the on and offline user experience through the Webroom concept, which will feature five locations by year end," said Harvey Kanter, Blue Nile Chairman, CEO and president.

"Our results reflect a higher level of investment than we anticipated, and while this impacted short-term results, we believe it will create long-term scale and profitability."

Looking ahead, Blue Nile full year net sales are expected to sit between $465 million and $495 million. Earnings per diluted share are projected at $0.88 to $0.95, said the firm.