Higher Polished Prices Impact Blue Nile In Q2

The firm's international net sales were up 5 percent at $18 million.

Internet diamond and jewelry seller, Blue Nile, posted a 1.3 percent decline on a year before in net sales to $106.6 million for the second quarter which ended on June 29. The online retailer said it was impacted by increased polished diamond prices.

The company said that sales of U.S. engagement rings for the second quarter slipped by 4.6 percent to $61 million, while U.S. non-engagement net sales edged up 2.6 percent to almost $28 million.

"The diamond price environment in Q2 materially impacted our performance,” said Harvey Kanter, Chairman, CEO and President. “As a result we executed strategic and targeted price changes to ensure that Blue Nile's superior value is absolutely clear to the consumer.

 

"With these changes we are seeing a return to growth, and when diamond prices normalize, we expect to see even greater benefits from ongoing investments we're making in the user experience. Without question, Blue Nile offers the highest quality products and selection, incredible service, and industry-leading value to our customers."

The company sees net sales of $105 million-$108 million for the third quarter, and of $475 million-$490 million for its fiscal year 2014 which ends on January 4, 2015.