Online diamond and jewelry retailer Blue Nile reported a dip in second-quarter earnings, but the results were in line with analyst expectations. The Seattle-based company said Q2 net income was $2.8 million, or 19 cents a share, compared to $3.2 million, or 20 cents a share, the same quarter a year ago. Analysts had expected earnings of 19 cents a share.
Sales for the second quarter totaled $69.9 million, down from $73.7 million in the year-ago quarter, a drop of 5.2 percent. International sales were $7.1 million, down 12.3 percent, primarily due to the impact of foreign currency exchange rates.
Blue Nile said that excluding the impact of currency exchange rates, international sales would have declined 1.2 percent, but the company also said it "experienced continued economic weakness in key markets, particularly the U.K."
"Blue Nile delivered excellent financial results in a challenging retail environment, with strong profitability and market share gains,” said
In an Aug. 4 preview of Blue Nile's second-quarter earnings, McAdams Wright Ragen analyst Dan Geiman wrote:
We continue to believe that NILE is relatively well positioned within the jewelry market given its competitive price points, relatively affluent and educated customer base, and strong supplier relationships, which should allow the company to outperform its peers. Longer-term, a reduction in store capacity within the jewelry industry should be a plus for NILE as well.
Blue Nile said its inventories were
Blue Nile Chief Financial Officer Marc Stolzman said expects sales to be "flat to slightly down" in the third quarter. He said he projects full-year net sales of between
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