Blue Nile 3Q profit rises in part on higher sales

posted: 96 DAYS 14 HOURS AGO

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SEATTLE -Online jewelry retailer Blue Nile Inc. said Thursday that its profit rose 10 percent in the third quarter on higher sales and flat operating costs.

CEO Diane Irvine said the Web retailer had gained market share in the quarter and had good momentum heading into the holiday season, when many people use the festive spirit to make proposals of marriage. The company also raised its fourth-quarter profit estimate.

Blue Nile, based in Seattle, earned $2.6 million, or 17 cents per share, in the quarter that ended Oct. 4. That is up from the $2.3 million, or 15 cents per share, it earned a year earlier.

The latest results beat a 16 cent per share estimate of analysts polled by Thomson Reuters.

Revenue rose 2 percent to $66.9 million from $65.4 million. Analysts had expected $65.6 million. The company said international sales growth was strong during the quarter.

Blue Nile said it now expects fourth-quarter profit in a range of 35 cents to 39 cents per share. Analysts expect 33 cents per share.

Its hares rose $2.28, or 3.9 percent, to $61.25 in after-hours trading after closing Thursday at $58.72, up 3.8 percent from a day earlier.

2009-11-05 20:06:31