Retailer’s net sales total £71m for the second quarter ended June 30.
Blue Nile has enjoyed a positive second quarter, with net sales up 18.7% in the quarter ending June 30, according to its Q2 financial results released today.
The online diamond and fine jewellery retailer’s net sales totalled $108 million (£71m) for the second quarter ended June 30, 2013 compared to $91.0 million (£59.8m) for the same period in 2012.
Its operating income for the quarter totalled $3.4 million (£2.25m), representing an operating margin of 3.2% of net sales. Its net income totalled $2.2 million (£1.44m).
Blue Nile’s international net sales for the second quarter 2013 were $17.1 million (£11.2m), compared to $14.4 million (£9.5m) for the second quarter 2012, an increase of 19.1%.
US engagement net sales for the second quarter 2013 increased 22.0% to $63.9 million (£42m), compared to $52.4 million for the second quarter of 2012, while US non-engagement net sales for the second quarter 2013 increased 11.3% to $27.0 million (£17.7), compared to $24.2 million (£15.9m) for the second quarter of 2012.
Gross profit for the second quarter 2013 totalled $20.1 million (£13.2m). As a percent of net sales, gross profit was 18.6% compared to 18.9% for the second quarter of 2012.
The company’s Non-GAAP adjusted EBITDA for the quarter totalled $5.5 million (£3.61m). For the trailing twelve month period ended June 30, 2013, net cash provided by operating activities totalled $26.1 million (£17.1m) compared to $18.7 million (£12.3m) for the trailing twelve month period ended July 1, 2012.
Blue Nile’s president and chief executive Harvey Kanter said: "We are excited to have achieved double digit revenue growth in the second quarter of 2013 across the three main categories of our business: US engagement, US non-engagement and international.
"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 jewellery. We continue to provide our customers with a superior shopping experience, unparalleled value proposition, and top-notch customer service. We are also excited by our ongoing development of compelling website features that will be dynamically available across all devices."
Blue Nile has also announced that founder Mark Vadon will step down from his role as chairman and director of the board effective December 31, 2013. Kanter will assume the role of chairman and the board will continue to have a lead independent director.
Blue Nile chairman and founder Mark Vadon said: "Founding and being a part of Blue Nile for the past 14 years has been a great honour, and I am tremendously proud of the entire team for fostering our culture of innovation and obsession over each and every customer.
"After working with Harvey and his leadership team over the last year and seeing the impressive growth trajectory of the business, the entire board and I feel confident passing the chairmanship to Harvey to continue to build a global consumer brand."
Looking ahead, Blue Nile’s expectations as of August 1, 2013 are that actual results may be materially affected by several factors, such as consumer spending, economic conditions and the various factors detailed below.
Blue Nile’s expectations for the third quarter of 2013 ending September 29 are net sales are of between $96 million and $100 million and earnings per diluted share are projected at $0.13 to $0.17.
Its expectations for the fiscal year 2013 ending December 29, 2013 are net sales of between $440 million and $470 million and earnings per diluted share are projected at $0.75 to $0.85.