Online diamond jewellery retailer Blue Nile has released its financial results for its third quarter ended October 4 2015, citing a 4.0% increase in net sales to $109.9 million (£72.1m).
Operating income for the quarter totalled $3.0 million (£1.9m), representing an operating margin of 2.8% of net sales, compared to $2.6 million (£1.7m) in operating income and 2.4% operating margin for the third quarter 2014.
Net income totalled $2.0 million (£1.3m) for the third quarter 2014.
Blue Nile’s board of directors authorised the renewal of the company’s share repurchase program. The company is authorised to repurchase up to $100.0 million (£65.5) of its common stock over the next 27 months.
Harvey Kanter, Blue Nile chairman, CEO, and president, said: “Today we announced another quarter of continued growth and heightened profitability, delivering double-digit increases in net income and earnings per share.
“Importantly, we expanded profitability while at the same time investing in initiatives to drive greater long-term growth. These initiatives, which include online and offline marketing and the Webroom concept, focus on building awareness and generating a greater level of trust for buying diamonds and fine jewellery online.”
International net sales for the third quarter 2015 were $19.9 million (£13.0m), compared to $21.5 million (£14.1m) for the third quarter 2014, a decrease of 7.2%. Excluding the impact from changes in foreign exchange rates, international net sales increased 3%.
Gross profit for the third quarter 2015 totalled $21.2 million (£13.9). As a percent of net sales, gross profit was 19.3% compared to 17.8% for the third quarter 2014.
During the third quarter 2015, Blue Nile repurchased 7,763 shares of its common stock for $0.2 million (£0.13m).
Looking ahead to the rest of the fiscal year, Blue Nile expects the year ending January 3 2016 to result in net sales of $448-505m (£290.5-327.5m).