Newly public Blue Nile’s Q2 net sales rise 29%, as net income drops
After online jeweler Blue Nile Inc. raised $42.5 million through its initial public offering of stock in May, the administrative costs of operating as a public company helped lead to a 14% year-to-year drop in Q2 net income even as net sales rose 29% to $35 million, Blue Nile reported today.
The May 19 IPO resulted in Blue Nile reporting Q2 cash and cash equivalents of $52.6 million, four times the $13.2 million it reported a year ago. But the cost of operating as a public company, including preparing and filing quarterly reports, plus the costs of the increased sales, resulted in a 31% increase in operating expenses and 14% drop in net income, to $1.9 million from $2.2 million, Blue Nile said.
Average purchase price per order in Q2 was $1,300, up 0.7% from the year-ago quarter, reported Blue Nile, No. 54 in Internet Retailer`s Top 300 Guide to online retailers.
CEO Mark Vadon attributed the growth in sales to Blue Nile’s emphasis on web site performance and customer service. “Our rapid sales growth continues to be powered by increasing numbers of customers who seek our in-depth information, convenience, and the ability to customize their diamond jewelry purchases on BlueNile.com,” he said.
The company said it expects full-year 2004 net sales to be between $162.5 million and $166.5 million.
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