Blue Nile Announces Fourth Quarter And Fiscal Year 2010 Financial Results

Reports Record Fourth Quarter Net Sales of $114.8 Million, up 11.5%

Fourth Quarter International Sales Increase 30.8% to $15.3 Million

Fourth Quarter Earnings Per Diluted Share Total $0.41, up 17.1%

Record Full Year Non-GAAP Free Cash Flow Grows to $39.8 Million

SEATTLE, Feb. 10, 2011 (GLOBE NEWSWIRE) -- Blue Nile, Inc. (Nasdaq:NILE), the leading online retailer of diamonds and fine jewelry, today reported financial results for its fourth quarter and fiscal year ended January 2, 2011.

Net sales for the fourth quarter increased 11.5% to $114.8 million from $102.9 million in the fourth quarter of 2009. Operating income for the quarter rose 11.8% to $9.2 million, from $8.2 million in the fourth quarter of 2009. Net income totaled $6.2 million, an increase of 13.6% over the fourth quarter last year. Earnings per diluted share increased 17.1% to $0.41, compared to $0.35 in the fourth quarter of 2009. Non-GAAP adjusted EBITDA increased 9.3% to $11.6 million for the quarter, compared to $10.6 million for the fourth quarter last year.

For the full year, Blue Nile reported net sales of $332.9 million, compared to $302.1 million for the full year of 2009, an increase of 10.2%. Operating income rose 10.0% to $21.3 million from $19.3 million in the prior year. Net income for the year increased 10.5% to $14.1 million and earnings per diluted share increased 11.9% to $0.94. Non-GAAP adjusted EBITDA for 2010 increased 7.5% to $31.3 million.

Net cash provided by operating activities totaled $41.6 million for the year. Non-GAAP free cash flow for the year increased to $39.8 million.

"Blue Nile delivered excellent fourth quarter results, driven by the strongest holiday sales season in our history. This capped a successful year for our business, reflected in record annual sales, gross profit, EBITDA and free cash flow generation," said Diane Irvine, Chief Executive Officer. "As we look ahead in 2011, we are well positioned to capitalize on the significant growth opportunities that we see for our business in the U.S. and international markets."