Blue Nile Launches the 'Ring It. Sing It.' Contest

Online diamonds and fine jewelry retailer, Blue Nile, Inc., has launched a two-part online engagement contest. The winning couple will hold their proposal at NASDAQ headquarters in New York while serenaded by Josh Jenkins of Green River Ordinance and singer/actress Katharine McPhee.

The “Ring It. Sing It.” contest also will provide 11 winning couples with a one-of-a-kind song about their love written and performed by pop-rock band Green River Ordinance and an Infinity Love Knot Pendant from Blue Nile.

Green River Ordinance

The first part of the contest, “Ring It.,” launched Tuesday and will culminate with a live proposal at NASDAQ on November 29, known as Cyber Monday, the launch of the online holiday shopping season. Blue Nile, who is ringing the “Opening Bell” to mark the day, will provide the couple with an all-expenses-paid trip to New York and the groom-to-be with a custom diamond ring for the proposal. Green River Ordinance lead singer Josh Jenkins will serenade the couple in a live, acoustic performance of the band’s hit song “Endlessly,” and Katharine McPhee will perform “It's Not Christmas Without You” from her recently launched holiday album, Christmas is the Time To Say I Love You. The proposal will take place at 9:30 a.m. and will be broadcast live in Times Square.

Winners of the weekly “Sing It.” portion of the contest will have their love story put to music. Green River Ordinance will serenade the couple with a personalized song performed and recorded using ooVoo, a video communication service, to share with friends, family and the world via social media.

To learn more about the "Ring It. Sing It." contest and to register, visit http://www.facebook.com/BlueNile. The "Ring It. Sing It." contest is open to all U.S. residents ages 18 and older. "Ring It." entries will be accepted until November 15. Submissions for “Sing It.” began this week and must be received by Sunday of each competition week.

Blue Nile Sales Up 19.8 Percent

Blue Nile said Thursday its net sales increased 19.8%, year-over-year, to $89.8 million for the third quarter due to a increases in all its product categories, including its new focus on fashion jewelry, and a large increase in new customers. However, international sales fell for the period ended September 30.

Operating income for the diamonds and jewelry Internet retailer totaled $2.7 million, representing an operating margin of 3 percent of net sales. Net income totaled $1.7 million, or $0.14 per diluted share. Non-GAAP adjusted EBITDA for the quarter totaled $4.8 million.

"We are excited to report solid results in the third quarter, with accelerating revenue growth and expanding earnings per share, said Harvey Kanter, president and CEO of the Seattle-based company. “The execution of our strategy is clearly on track. Investments we made in marketing and pricing are working and building momentum behind the strength of our diamond engagement products. Sales of our non-engagement products also improved this quarter, and we are only beginning to launch an assortment of new jewelry aimed to further accelerate our growth. With continued steady execution of our strategy coupled with exciting product offerings for the holiday season, we believe we are well positioned to achieve our goals for 2012.”

Among the highlights for the third quarter:

* U.S. engagement net sales increased 31.5 percent to $54.1 million.
    
* U.S. non-engagement net sales (a new focus for the company) increased 12 percent to $21.8 million.
    
* International net sales fell 3.3 percent to $14.4 million for the third quarter 2011. Excluding the impact from changes in foreign exchange rates, international net sales decreased 1.5 percent.
    
* Gross profit totaled $16.9 million. As a percent of net sales, gross profit was 18.8 percent compared to 19.8 percent for the third quarter of 2011.
    
* New customers grew 22.4 percent.  
    
* Selling, general and administrative expenses were $14.3 million, compared to $12 million in the third quarter of 2011.
    
* At the end of the third quarter, cash and cash equivalents totaled $30.2 million.

In its financial guidance, the company said it expects fourth quarter net sales to be between $140 million and $153 million, with earnings per diluted share are projected at $0.44 to $0.50.

For the fiscal year it expects net sales to be between $404 million and $417 million, with earnings per diluted share are projected at $0.70 to $0.75.

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Blue Nile Q3 Sales Up 10.1%, Net Sales Total $2.9 Million

Blue Nile, Inc. said Thursday that net sales increased 10.1% year-over-year to $98.9 million for the third quarter ended September 29. Operating income for the quarter totaled $2.5 million, representing an operating margin of 2.5% of net sales. Net income for the period totaled $2.9 million (compared with $1.7 million in the third quarter of 2012) or $0.23 per diluted share.

Non-GAAP adjusted EBITDA for the quarter totaled $4.6 million. 

"These results demonstrate once again that our strategy is working. Our third quarter sales increase of 10.1% is on top of 19.8% in the prior year and is our sixth consecutive quarter of double digit growth," said Harvey Kanter, president and CEO of the diamond and jewelry online retailer. 

Blue Nile's Board of Directors authorized the renewal of the company's share repurchase program. It has the authority to repurchase up to $100 million of its common stock over the next two years. 

Third quarter financial highlights for the Seattle-based company include the following:

* U.S. engagement net sales increased 7.1% to $57.9 million.

* U.S. non-engagement net sales increased 9.6% to $23.9 million.

* International net sales increased nearly 23% to $17.1 million. Excluding the impact from changes in foreign exchange rates, international net sales increased 27.6%.

* Gross profit totaled $18.7 million. As a percent of net sales, gross profit was 18.9% compared to 18.8% for the third quarter of 2012. 

* Selling, general and administrative expenses were $16.2 million, compared to $14.3 million in the third quarter of 2012. These expenses include stock-based compensation expense of $1.2 million, compared to $1.3 million for the third quarter 2012.

* Earnings per diluted share included stock-based compensation expense of $0.06 for the third quarter 2013 and for the third quarter 2012.

At the end of the third quarter 2013, cash and cash equivalents totaled $47.9 million.

In its outlook, Blue Nile said it expects fourth quarter net sales to be between $146 million and $161 million. Earnings per diluted share are projected at $0.37 to $0.46.

For the year, the company said it expects net sales to be between $450 million and $465 million with earnings per diluted share are projected at $0.84 to $0.93.

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Blue Nile Launches Diamond Shopping App

Online diamond and jewelry retailer Blue Nile, Inc. has released a shopping app. The Blue Nile App allows consumers to comparison shop and purchase diamonds through the convenience of iPad, iPhone and iPod touch. The new app is available at the Apple app store.

The app allows customers to search through BlueNile’s diamond inventory for certain specification, connect to Blue Nile's diamond and jewelry consultants, and purchase a diamond through their iPhone, iPad, or iPod touch. Consumers can also browse thousands of engagement rings and educational materials.

Blue Nile Sales Up Nearly 10%

Blue Nile, the leading online retailer of diamonds and fine jewelry, reported that net sales for the second quarter increased 9.7 percent to $76.6 million. Operating income for the period totaled $4.2 million, representing an operating margin of 5.5 percent of net sales. Net income totaled $2.8 million.

Non-GAAP adjusted EBITDA for the quarter totaled $6.9 million. For the trailing twelve month period ended July 4, 2010, net cash provided by operating activities totaled $24.1 million and Non-GAAP free cash flow totaled $22.1 million.

"We delivered record second quarter sales and non-GAAP adjusted EBITDA in what remains a challenging consumer environment,” said Diane Irvine, CEO of the Seattle-based company. “While we experienced high growth throughout most of the quarter, we saw a slowdown in consumer demand in the month of June. Consumers overall began to pull back on high ticket purchases, unlike earlier in the year, based on economic concerns such as high unemployment levels and market volatility.”

Among the highlights for the second quarter are:

* International sales grew 28.2 percent to $9.1 million. Excluding the impact from changes in foreign exchange rates, international sales increased 21.1 percent.

* Total orders during the quarter increased approximately 3.5 percent to 39,407. Average ticket for the quarter increased approximately 6 percent to $1,944.

* Gross profit for the quarter totaled $16.2 million, an increase of 7.8 percent, year-over-year. As a percentage of sales, gross profit totaled 21.1 percent.

* Sales growth during the quarter was strongest in non-engagement jewelry, including diamond bands, earrings and necklaces.

In its guidance for the fiscal year ending Jan. 2, 2011, the company said it expects net sales from $325 million to $335 million, representing growth of 7.5 percent to 11 percent, year-over-year.

Blue Nile Launches Facebook ‘Click for Mom’ Campaign

Online diamond and jewelry retailer, Blue Nile, is giving its Facebook fans an opportunity to get mom something special for Mother's Day this year with its "Click for Mom" campaign.

Launched under a custom tab on the company's Facebook page (www.facebook.com/bluenile), fans can enter for a chance to receive $25 off a $50 purchase, or gift certificates valued at $50, $100, or even $1,000. All prizes can be redeemed instantly on www.bluenile.com. The Seattle-based company also says that everyone who enters wins something for mom.

The campaign ends at 3:00 p.m. (PDT) on Friday, May 6.

Blue Nile Names New CEO

Harvey Kanter

Online diamond and jewelry retailer, Blue Nile, has appointed retail industry veteran Harvey Kanter as CEO and president, effective March 30. He will also be appointed to the Seattle-based company’s board of directors. He replaces Diane Irvine who resigned suddenly in November.

Interim CEO, Vijay Talwar, has been named general manager and president of International, and will lead Blue Nile’s international business.

Kanter has more than 25 years of merchandising and retail experience, including multichannel retail and merchandising positions. Prior to joining Blue Nile, he served as president and CEO of Moosejaw Mountaineering and Backcountry Travel, Inc., a leading multichannel retailer of premium outdoor apparel and gear. Under his leadership, Kanter developed Moosejaw’s enhanced brand architecture and market positioning by clearly defining the merchandising, marketing, and consumer experience strategy and initiatives. During his tenure, Moosejaw experienced double-digit revenue growth and was the recipient of numerous industry awards, including: Internet Retailer Hot 100 and Hot 100 Mobile, and Ad Age Top 50 Marketing Company.

Before Moosejaw, Kanter served as executive VP and managing director of Michaels Stores, the nation’s largest craft store chain in the United States and Canada, with nearly $4 billion in annual sales. While at Michaels, Kanter led the overhaul of the company’s product merchandising and was responsible for product trend development.

“Harvey brings a vibrant leadership style and a unique ability to align product strategy and marketing in such a way that inspires consumers,” said Mark Vadon, Blue Nile chairman. “His dynamism and passion, coupled with his experience in online and traditional retail, are just what we need to drive growth and inspire the next generation of Blue Nile customers.”

Blue Nile Q4 Net Sales Up 21%

Blue Nile said Tuesday that net sales increased 21.2 percent to $136.1 million for the fourth quarter, led by a 30 percent increase in bridal jewelry sales. Operating income for the period, ended December 30, 2012, totaled $7.1 million, representing an operating margin of 5.2 percent of net sales. Net income totaled $4.9 million, or $0.39 per diluted share. Non-GAAP adjusted EBITDA for the quarter totaled $9.1 million.

For the full year, the online diamond and fine jewelry retailer reported that net sales increased by 14.9 percent to $400 million. Operating income for the full year was $12.3 million, compared to $16.9 million in the prior year. Net income for the year was $8.4 million and earnings per diluted share totaled $0.63. Non-GAAP adjusted EBITDA for 2012 was $20.6 million.

Harvey Kanter, Blue Nile president and CEO of the Seattle-based company, noted that non-engagement jewelry sales for the holidays did not meet expectations but growth for the fourth quarter was still greater than 5 percent.

Net cash provided by operating activities totaled $34.4 million for the year compared to $15.4 million for the prior year. Non-GAAP free cash flow for the year was $31.9 million compared to $10.1 million for the prior year.

In its outlook, Blue Nile said it expects net sales to be between $94 million and $100 million with earnings per diluted share projected at $0.05 to $0.08. For the 2013 fiscal it expects net sales to be between $440 million and $470 million and earnings per diluted share are projected at $0.75 to $0.85.

"The fourth quarter caps off a great year of growth at Blue Nile, building upon our sequential growth while posting greater profitability versus the prior year. Investments we made in 2012 paid off with the highest annual levels of revenue growth and customer acquisition in five years, exceptional strength in engagement sales in the U.S., and a return to strong growth internationally,” said Harvey Kanter, Blue Nile president and CEO. “While we fell short of our expected sales of non-engagement jewelry during the holiday season, in part due to a weaker environment for consumer discretionary spending, we gained valuable insight that will guide the evolution of our product mix. We believe that our strategy to accelerate this part of our business is on track."

The company also announced it has entered into an agreement with U.S. Bank National Association for borrowing under a $35 million revolving credit facility maturing in 2014.

Among the highlights:

* U.S. engagement net sales for the fourth quarter 2012 increased 31 percent to $73.6 million. U.S. engagement net sales for the full year 2012 increased 21.7 percent to $226.6 million.

* U.S. non-engagement net sales for the fourth quarter 2012 increased 5.3 percent to $42.5 million. U.S. non-engagement net sales for the full year 2012 increased 4.9 percent to $111 million.
    
* International net sales for the fourth quarter 2012 increased 26.8 percent to $20 million. International net sales for the full year 2012 increased 11.7 percent to $62.4 million. Excluding the impact from changes in foreign exchange rates, international net sales increased 12.6 percent for the fiscal year.
    
* Gross profit for the fourth quarter totaled $25.7 million. As a percent of net sales, gross profit was 18.8 percent compared to 20.7 percent for the fourth quarter of 2011. Gross profit for the year totaled $75.1 million.
    
    New customers, which are defined as individuals who have not made a prior purchase from Blue Nile, grew 7.8 percent in the fourth quarter of 2012 compared to the fourth quarter of 2011. For the full year, new customers grew 17.6 percent compared to the full year of 2011.
    
* Selling, general and administrative expenses for the fourth quarter were $18.6 million, compared to $16.9 million in the fourth quarter of 2011. Selling, general and administrative expenses for the full year were $62.8 million, compared to $55.2 million for the full year 2011.
    
* Earnings per diluted share for the fourth quarter included stock-based compensation expense of $0.06 for the fourth quarter of 2012 and 2011.
    
* Cash and cash equivalents at the end of the fiscal year totaled $87 million, compared to $89.4 million at the end of the fiscal year 2011.

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