The company’s founder will depart at the end of the year.
Thad Rueter , Senior Editor
Blue Nile Inc.’s sales in the second quarter increased 18.7% compared with the same period a year ago.
The web-only jewelry retailer, No. 74 in the Internet Retailer Top 500 Guide, also said today that founder Mark Vadon will depart as chairman and board director on Dec. 31, though the retailer gave no reason for the move. Vadon founded the company in 1999 and was CEO until 2008. President and CEO Harvey Kanter will replace him.
For the quarter ended June 30, Blue Nile reports:
• Net sales increased year over year 18.7% to $108.0 million from $91.0 million in the same period last year.
• Net income increased 37.5% to approximately $2.2 million in 2013 from about $1.6 million.
• Sales of engagement rings in the United States grew year over year 21.9% to $63.9 million from $52.4 million.
• Sales in other jewelry categories in the United States increased about 11.6% to $27.0 million from $24.2 million in 2012.
• International sales grew year over year 19.1% to $17.1 million.
• Selling, general and administrative expenses hit $16.7 million, up 12.0% compared with the same period in 2012. Those expenses include stock-based compensation of $1.3 million.
"We are excited to have achieved double digit revenue growth in the second quarter of 2013 across the three main categories of our business: U.S. engagement, U.S. non-engagement and international," Kanter says. "This represents the fifth consecutive quarter of double digit growth and further demonstrates our position as a leading global retailer of high-quality diamonds and fine jewelry.”
Blue Nile said that for the third quarter of 2013, it expects net sales to range between $96 million and $100 million.
For the year to date, Blue Nile reports:
• Net sales of $205.1 million, up 17.8% from about $174.1 million.
• Net income of approximately $3.0 million, up 76.5% from $1.7 million for the same period last year.