Web sales for online jeweler Blue Nile Inc. jumped 26.8% in the third quarter to $53.2 million from $42 million in Q3 2005. At the same time net income decreased by 28% to $1.8 million from $2.5 million from the prior year because of a change in accounting requirements and standards related to expensing stock-based compensation.
“Our business model continues to demonstrate the ability to generate exceptional results, as reflected in our third quarter financial performance,” says Blue Nile CEO Mark Vadon. “The growing appeal of the Blue Nile brand, along with our focused operational execution, helped drive strong revenue growth and robust earnings results. Our performance reflects the powerful combination of our unequaled consumer value proposition and our efficient cost structure.”
The company is also well positioned for financial gains in the fourth quarter and during the holiday shopping season, he says. “Our category leadership positions us well as we head into the upcoming holiday season. We will continue to focus on delivering an exceptional experience to our customers,” Vadon says. “We are confident in our ability to execute on the significant long-term potential we believe the business has for future growth and profitability.”
Blue Nile, No. 52 in the Internet Retailer Top 500 Guide to Retail Web Sites, expects web sales in 2006 to increase to between $249 million and $255 million, an increase of at least 23% over web sales of $203 million in 2005.
Back...
