Online diamond and jewelry retailer Blue Nile reported flat second-quarter sales and lower profits for its fiscal second quarter which ended on July 3 from a year earlier as it was hit by lower average prices for its goods. Net sales were $113.8 million compared with $113.7 million for the same quarter last year. Analysts had been expecting earnings of $114.10 million.
“These results are short of what we expected,” said CEO Harvey Kanter during a conference call with investors. The firm said that sales were robust until a drop-off in June. “We’re still assessing what happened,” he said. U.S. engagement ring net sales decreased 4.4 percent to $62.6 from $65.5 million a year ago. More expensive rings – above $25,000 – saw stronger sales than in previous quarters, Kanter added. Meanwhile, international sales rose more than 6 percent to $20.8 million from the year-earlier quarter. Excluding foreign exchange rate fluctuations, international net sales jumped more than 9 percent, the company reported.