Blue Nile reports sparkling first-quarter results

Blue Nile Inc., which sells diamonds and jewelry online, reported today first-quarter sales of $67.9 million, up 34% from $50.7 million in the first three months of 2006. Net income for the first quarter was $3.2 million, or 19 cents a share, compared with $2.4 million, or 13 cents a share, a year ago.

“Blue Nile had a terrific first quarter of 2007,” said CEO Mark Vadon. “We experienced tremendous growth in our business and generated substantial profitability.” The fastest growth was in sales of jewelry priced above $25,000, which grew by 84%, added Diane Irvine, president and chief financial officer.

The company, No. 52 in the Internet Retailer Top 500 Guide, noted that international sales through its Canada and United Kingdom web sites totaled $2.6 million in the first quarter, up 84% from a year ago. Blue Nile projects full-year revenue of $295 million to $305 million, compared with $252 million in 2006.

Shares in Blue Nile were up more than 16% in mid-day trading today following the earnings release.