Blue Nile reported Thursday that its second-quarter net income jumped 40 percent on improved revenue for the online jewelry seller.
The Seattle-based company also announced that its founder, Mark Vadon, will step down from his role as chairman and director of the board at the end of the year. Blue Nile’s President and CEO Harvey Kanter will assume the role of chairman and the board will continue to have a lead independent director.
Blue Nile earned $2.2 million, or 17 cents a share, for the period that ended June 30. That is up from $1.6 million, or 11 cents a share, last year. The quarter’s profit exceeded analyst estimates of 15 cents a share, according to a poll by FactSet.
Its revenue increased to $108 million from $91 million on improved sales in both its domestic and international business. Engagement sales increased 22 percent and non-engagement sales increased 11.3 percent for the quarter.
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Analysts expected $103 million in revenue.
Blue Nile said it expects to earn between 13 and 17 cents a share for its third quarter on revenue between $96 million and $100 million. Analysts were anticipating earnings of 17 cents a share on revenue of $100.7 million.
For the full year, the company expects to earn between 75 and 85 cents a share on revenue between $440 million and $470 million. Analysts were anticipating earnings of 82 cents a share for the year on revenue of $454.8 million.
Blue Nile shares closed down $1.33, or 3.4 percent, at $37.50 Thursday. Its stock remains in the middle of the 52-week trading range of $23.63 and $43.54.