Blue Nile posts flat 2nd-quarter results, weak forecast misses views, sending shares down

Blue Nile shares slump on 2Q miss, weak forecast

SEATTLE — Online diamond and jewelry retailer Blue Nile Inc. on Thursday said its second-quarter profit edged down about 1 percent, as expenses rose faster than sales.

The results missed Wall Street expectations, and the company issued a full-year forecast well below analyst projections, sending shares down sharply after hours.

Blue Nile stock plunged $5.54, or 11.7 percent, to $42 in aftermarket electronic trading, from their close in the regular session at $47.54.

For the three months ended June 30, Blue Nile said net income slipped to $2.8 million, or 19 cents per share, from $2.84 million, or 19 cents per share, in the year-ago quarter.

Revenue rose 10 percent to $76.6 million, from $69.9 million last year.

Analysts surveyed by Thomson Reuters, on average, expected profit of 23 cents per share, on revenue of $80.8 million.

Blue Nile’s expenses rose faster than its sales. The company said its cost of sales rose 10 percent to $60.4 million, while selling, general and administrative expenses climbed 12 percent to $12 million.

The company expects to post full-year profit between 94 cents and $1 per share, on revenue between $325 million and $335 million.

Both figures fell below Wall Street projections.

For the year, analysts forecast profit of $1.02 per share, with estimates ranging from $1 to $1.05. Wall Street is expecting full-year sales of $349 million, with estimates ranging from $341.5 million to $356.5 million.