Sales at online diamond jewellery retailer Blue Nile rose 2.6% to $106.5 million (£69.15m) in the quarter ended April 5 2015.
Operating income for the quarter hit $1.9m (£1.23m) compared to $1.6m (£1.03m) for Q1 2014.
Net income reached $1.2m (£779,354) compared to $1.1m (£714,420) for the first quarter of 2014.
Blue Nile chairman, chief executive officer and president Harvey Kanter, commented: “In the first quarter, we meaningfully expanded profitability while making even greater investments in marketing and pricing as we looked to grow the business. While sales growth was modest, we drove solid performance in an industry that is experiencing overall challenges.
“Looking forward, we will continue to drive our investments in pricing, while also creating more specialized marketing, promoting designer relationships, and executing our Webroom concept, in order to build greater trust and compel consumers to move online.”
Blue Nile’s increased its sales by 2.1% across engagement categories to $61m (£39.6m) compared to Q1 2014, with non-engagement sales decreasing by 0.3% to $26m (£16.8m).
International net sales for the first quarter 2015 were $19.5m (£12.65m) compared to $17.9m (£11.6m) in the corresponding period of 2014.
Gross profit also reached $20m (£12.97m), representing 18.8% of net sales. This is up slightly from 18.4% for Q1 2014.
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).