May 8, 2006
Blue Nile Posts Strong Sales
Blue Nile Inc., the online jeweler based in Seattle, announced net sales of $50.7 million in the first quarter of 2006, an increase of 14.9% over the same period last year and a surprise for investors.
The company reported net income of $2.4 million, or $0.13 a share. Wall Street predicted a net income of 12 cents a share. The company's stock rose after the announcement. Sales were down from its record $73.2 million sales in the fourth quarter of 2005.
The company's net income was expected to fall because Blue Nile recently moved to a new accounting system to meet requirements regarding the expensing of stock-based compensation. The change reduced net income by $0.03 per diluted share.
The company's CEO, Mark Vadon, attributed the strong growth to the company's dedication to providing exceptional experiences for its cusotmers, and said the growth came in the face of a "challenging cost environment for online marketing."