BlueNile.com reaches $50 million in sales for the year

Revenues last year at Seattle-based Blue Nile Inc., which operates the diamond and fine jewelry site BlueNile.com, reached $50 million, 10% over the prior year. Operating profit reached $1.1 million in the fourth quarter, the company reported today.

"The fact that we were able to significantly grow revenue and achieve profitability in the luxury retail sector during a recession speaks to the underlying strength of our business," said Blue Nile CEO Mark Vadon.

During 2001, 8.9 million consumers visited the Blue Nile web site, an 88% increase over 2000. Transactions grew by 53% year-over-year. It claims a 1% dollar market share of the total U.S. engagement ring market.

BlueNile.com, which launched in November 1999, says it was able to achieve its rapid road to profitability by selling high-ticket items that require low overhead for storing and shipping. Blue Nile’s average ticket exceeds $1,000.