August 5, 2014, 10:17 AM

Online jeweler Blue Nile books a 1.3% sales decrease in Q2

But international sales increased 4.8% for the Top 500 web-only retailer.

There was little sparkle in the second quarter financial results announced today by the leading web-only jewelry retailer.

Net sales decreased 1.3% year over year in the second quarter for Blue Nile Inc. However, Blue Nile, No. 78 in the Internet Retailer 2014 Top 500 Guide reported a 4.8% increase in sales to consumers outside the United States.

"The diamond price environment in Q2 materially impacted our performance. As a result we executed strategic and targeted price changes to ensure that Blue Nile's superior value is absolutely clear to the consumer," says Harvey Kanter, Blue Nile’s chairman, CEO and president. "With these changes we are seeing a return to growth, and when diamond prices normalize, we expect to see even greater benefits from ongoing investments we're making in the user experience.”

For the second quarter ended June 29, Blue Nile reported:

• Net sales decreased year over year 1.3% to $106.6 million from $108.0 million in the same period last year.

• Net income decreased 1.4% to approximately $2.17 million from about $2.20 million in the same period last year.

• Sales of engagement rings in the United States declined year over year about 4.7% to $60.9 million from $63.9 million.

• Sales in other jewelry categories in the United States increased 2.6% to $27.7 million from $27.0 million in 2013.

• International sales grew year over year 4.8% to $18.0 million.

• Selling, general and administrative expenses hit $17.0 million, up 1.8% compared with $16.7 million in the same period in 2013. Those expenses include stock-based compensation of $1.1 million, down from $1.3 million in the second quarter of 2013.

For the first six months of the year, Blue Nile reports:

• Net sales of about $210.3 million, up 2.5% from $205.1 million in 2013

• Net income of $3.25 million, up 6.9% from about $3.04 million for the same period last year.

 

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