This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Blue Nile Announces First Quarter 2010 Financial Results

Blue Nile, Inc. (Nasdaq: NILE), the leading online retailer of diamonds and fine jewelry, today reported financial results for its first quarter ended April 4, 2010.

Net sales increased 18.7% to $74.1 million, the highest first quarter sales level in the Company’s history. Operating income for the quarter grew 23.3% to $3.6 million compared to $2.9 million in the first quarter last year. Operating margin expanded 10 basis points to 4.8% of net sales compared to 4.7% of net sales in the first quarter of 2009. Net income improved 23.1% to $2.4 million, or $0.16 per diluted share compared to $1.9 million, or $0.13 per diluted share in the first quarter of 2009.

Non-GAAP adjusted EBITDA for the first quarter totaled $6.2 million, an increase of 17.1% over the same quarter in 2009 and a record level for any first quarter in the Company’s history. Net cash provided by operating activities totaled $29.8 million for the trailing twelve month period ended April 4, 2010. Non-GAAP free cash flow for the trailing twelve month period ended April 4, 2010 increased 133% to $27.5 million from $11.8 million a year ago.

“We are pleased with our first quarter results, including excellent growth in sales and earnings,” said Diane Irvine, Chief Executive Officer. “Our performance reflects the strong fundamentals of our business model and our compelling consumer proposition, as customers seek high quality products, tremendous value and an exceptional shopping experience.”

Selected Financial Highlights

  • International sales grew 71.4% in the quarter to $9.6 million, a record level for any first quarter in the Company’s history. Excluding the impact from changes in foreign exchange rates, international sales increased 51.8%.
  • Gross profit for the quarter totaled $15.8 million. As a percentage of sales, gross profit improved 10 basis points to 21.3% compared to 21.2% for the first quarter of 2009.
  • Selling, general and administrative expenses for the quarter were $12.2 million, compared to $10.3 million in the first quarter of 2009. As a percentage of sales, selling, general and administrative expenses were 16.5% in both the current quarter and prior year quarter. Selling, general and administrative expenses include stock-based compensation expense of $1.8 million in the first quarter of 2010, unchanged from the first quarter last year.
  • Net income per diluted share for the quarter includes stock-based compensation expense of $0.08 for both the first quarter of 2010 and 2009.
  • During the quarter, the Company repurchased 292,100 shares of its common stock for $15.2 million. At the end of the first quarter, cash and cash equivalents totaled $47.2 million.

Financial Guidance

The following forward-looking statements reflect Blue Nile’s expectations as of May 6, 2010. Actual results may be materially affected by many factors, such as consumer spending, economic conditions and the various factors detailed below.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
NILE $31.53 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs