Blue Nile web sales hit $51 million in Q1
Blue Nile Inc. is reporting a 15% gain in e-commerce sales for the first quarter.
For Q1 2006, Blue Nile posted web sales of $50.7 million compared to e-commerce sales of $44.1 million in the first quarter of 2005. At the same time, net income declined 7.7% to $2.4 million in Q1 2006 from $2.6 million in the same quarter for the previous year.
The drop in net income is attributed to new accounting requirements related to expensing stock-based compensation, Blue Nile says. "We are pleased with the sales growth we achieved in the first quarter, despite the challenging cost environment for online marketing, while performing at a high level of execution for our customers and operating efficiently throughout the business,” says CEO Mark Vadon. “Our trailing twelve-month free cash flow results at the end of the first quarter highlight the strong cash flow generation capabilities of our business model."
In its earning release, Blue Nile says that second quarter net sales are expected to be between $51 million and $54 million, while full-year sales will range from $230 million to $245 million. Blue Nile is No. 48 in the Internet Retailer Top 400 Guide to Retail Web Sites.
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