Online diamond jewellery retailer Blue Nile has released its financial results for the first quarter ended April 3 2016, citing a 3.2% decrease in net sales.
Net sales decreased to $103.1 million (£71.1m), compared to $106.5million (£73.5m) for the same period last year.
Operating income for the quarter totalled $1.2 million (£0.8m), representing an operating margin of 1.2% of net sales, compared to $1.9 million (£1.3m) in operating income and 1.8% operating margin for the first quarter of 2015.
Net income reached $1.1 million (£0.7m) , versus $1.2 million (£0.8m) in Q1 last year.
“As expected, it was a challenging environment for us in the first quarter,” comments Blue Nile chairmen, chief executive and president Harvey Kanter. “However, we are encouraged by what we’ve seen to date in the second quarter and are making good progress on key initiatives, which we expect to fundamentally improve performance long term.”
US engagement net sales for the first quarter 2016 took a particular hit, decreasing by 7.0% to $56.7 million (£39.1m), compared to $61.0 million (£42.0m) for the first quarter 2015.
Non-engagement net sales however increased by 4.0% to $27.1 million (£18.6m), compared to $26.0 million (£17.9m) last year.
International net sales for the first quarter 2016 were $19.3 million (£13.m), a decrease of 0.9%. Excluding the impact from changes in foreign exchange rates, international net sales increased 4.1%.
Gross profit for the first quarter 2016 reached $20.2 million (£13.9m). As a percent of net sales, gross profit was 19.6% compared to 18.8% for the first quarter 2015.
Looking ahead to the rest of the fiscal year, Blue Nile expects the year ending January 1 2017 to result in net sales of $465-495 million (£320-341m).