Web diamond retailer to focus on Asian expansion and designer range.
US diamond jewellery retailer Blue Nile has announced its Q1 results for the three months ended March 30 2014, with net sales increasing 6.8% to $103.7 million (£61.4m).
The company’s operating income for the quarter totalled $1.6 million (£947,744), and net income totalled $1.1 million (£651,584), or $0.08 per diluted share.
Blue Nile president and chief executive officer Harvey Kanter said: "As we announce our financial performance, we remain steadfast in our execution of three key initiatives in 2014. These include enhancing the user experience; developing our product lines in bridal and diamond jewellery, as well as fashion pieces through The Designer Collective; and expanding internationally by building our presence in China and growing our established markets. Through these initiatives, we continue on our quest to be nothing less than the worldwide leading retailer of bridal and fine jewellery."
Highlights from Blue Nile’s Q1 results outlined an increase of 8% in engagement ring sales in the US, totalling $59.7 million (£35.4m), compared to $55.3 million for the first quarter of 2013.
Its non-engagement sales in US for the first quarter 2014 increased 7.6% to $26.1 million (£15.5m), compared to $24.2 million for the first quarter of 2013.
Its international net sales for the first quarter 2014 were $17.9 million (£10.6m), compared to $17.6 million for the first quarter 2013, an increase of 1.9%. Excluding the impact from changes in foreign exchange rates, international net sales increased 6.4%.
Blue Nile’s gross profit for the first quarter 2014 totalled $19.1 million (£11.3m). As a percent of net sales, gross profit was 18.4% compared to 18.2% for the first quarter of 2013.
Earnings per diluted share included stock-based compensation expense of $0.06 for the first quarter 2014 and $0.05 for the first quarter 2013.
The company’s non-GAAP adjusted EBITDA for the quarter totalled $3.6 million (£2.13m) compared to $3.1 million for the first quarter of 2013.
Looking ahead from May 1 2014, Blue Nile expects results may be materially affected by many factors, namely consumer spending, economic conditions and the various factors detailed below.
For Q2 the diamond company says net sales are expected to be between $108 million (£63.9m) and $113 million (£66.9m).
Its expectations for the fiscal year 2014, ending January 4 2015, Blue Nile sales are expected to be between $485 million (£287m) and $510 million (£302m).