Blue Nile Q1 Sales Up 3.8% to $70.5 Million, Names New CFO

Blue Nile announced net sales of $70.5 million for the quarter ended March 30, up 3.8 percent from $67.9 million in the previous year period. Net income for the quarter totaled $2.6 million, or $0.16 per diluted share.

Gross profit for the quarter grew 5.1 percent to $13.9 million, while gross profit as a percentage of sales increased to 19.8 percent, up from 19.5 percent in the previous year. Net cash provided by operating activities totaled $29.4 million for the trailing twelve-month period ended March 30, 2008.

International sales came to $5.7 million, a 124 percent year-over-year increase.

“We are pleased to have delivered financial results that exceeded our expectations, particularly in light of the weak consumer environment in the U.S.,” said CEO Diane Irvine.

“In this uncertain environment, we are keenly focused on enhancing the Blue Nile customer experience and vigorously managing our costs. Our international business continued its rapid growth during the quarter, and we are extremely pleased with the early results of our recent launches into 25 new countries.”

The company notes that its projected net sales growth for the second quarter, ending June 29, will be in the range of 0 to 5 percent, and that its goal is to grow net sales by at least 10 percent for fiscal year 2008.

In a separate release, Blue NIle announced the appointment of Marc Stolzman as chief financial officer, effective June 9. Stolzman replaces former CFO Robin Easton, who resigned March 31 after serving as CFO for six months.

Stolzman previously served as CFO of Imperium Renewables, a biodiesel refining and manufacturing technology firm and before that spent thirteen years with Starbucks Coffee Company, holding a number of executive positions.