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Blue Nile Announces First Quarter 2016 Financial Results

May 05, 2016 (GLOBE NEWSWIRE via COMTEX) --

First Quarter Net Sales of $103.1 million First Quarter Earnings Per Diluted Share of $0.09

SEATTLE, May 05, 2016 (GLOBE NEWSWIRE) -- Blue Nile, Inc. NILE, +0.67% a leading online retailer of diamonds and fine jewelry, today reported financial results for its first quarter ended April 3, 2016.

Net sales decreased 3.2% to $103.1 million for the first quarter ended April 3, 2016 compared to $106.5 million for the first quarter ended April 5, 2015. Operating income for the quarter totaled $1.2 million, representing an operating margin of 1.2% of net sales, compared to $1.9 million in operating income and 1.8% operating margin for the first quarter 2015. Net income totaled $1.1 million, or $0.09 per diluted share versus $1.2 million, or $0.10 per diluted share for the first quarter 2015.

Non-GAAP adjusted EBITDA for the quarter totaled $3.6 million compared to $4.0 million for the first quarter 2015. For the trailing twelve month period ended April 3, 2016, net cash provided by operating activities totaled $11.3 million compared to $10.5 million for the trailing twelve month period ended April 5, 2015. For the trailing twelve month period ended April 3, 2016, non-GAAP free cash flow totaled $7.2 million, as compared to $6.6 million for the trailing twelve month period ended April 5, 2015.

"As expected, it was a challenging environment for us in the first quarter," said Harvey Kanter, Blue Nile Chairman, CEO and President. "However, we are encouraged by what we've seen to date in the second quarter and are making good progress on key initiatives, which we expect to fundamentally improve performance long term."

Highlights

  • Blue Nile paid its first ever dividend on March 7, 2016 to shareholders of record at the close of business on February 22, 2016. This special cash dividend is equal to $0.70 per share. The Company determined the value of the dividend based on the level of earnings in fiscal year 2015. On an annual basis, the Company will reassess its use of capital, including investments in operations, strategic alternatives, share repurchases, and cash dividends.

  • U.S. engagement net sales for the first quarter 2016 decreased 7.0% to $56.7 million, compared to $61.0 million for the first quarter 2015.

  • U.S. non-engagement net sales for the first quarter 2016 increased 4.0% to $27.1 million, compared to $26.0 million for the first quarter 2015.

  • International net sales for the first quarter 2016 were $19.3 million, compared to $19.5 million for the first quarter 2015, a decrease of 0.9%. Excluding the impact from changes in foreign exchange rates, international net sales increased 4.1%.

  • Gross profit for the first quarter 2016 totaled $20.2 million. As a percent of net sales, gross profit was 19.6% compared to 18.8% for the first quarter 2015.

  • Selling, general and administrative expenses for the first quarter 2016 were $19.0 million, compared to $18.1 million in the first quarter 2015. Selling, general and administrative expenses included stock-based compensation expense of $1.2 million for both the first quarter in 2016 and the first quarter in 2015.

  • Earnings per diluted share for the first quarter 2016 was $0.09 compared to $0.10 for the first quarter 2015. Earnings per diluted share included stock-based compensation expense of $0.07 for both the first quarter 2016 and the first quarter 2015.

  • At the end of the first quarter 2016, cash and cash equivalents totaled $29.7 million.

Financial Guidance

The following forward-looking statements reflect Blue Nile's expectations as of May 5, 2016. Actual results may be materially affected by many factors, such as consumer spending, economic conditions and the various factors detailed below.

Expectations for the second quarter of 2016 (Quarter ended July 3, 2016):

  • Net sales are expected to be between $114 million and $117 million.
  • Earnings per diluted share are projected at $0.20 to $0.23.

Expectations for the fiscal year 2016 (Year Ending January 1, 2017):

  • Net sales are expected to be between $465 million and $495 million.
  • Earnings per diluted share are projected at $0.88 to $0.95.

Blue Nile reports fiscal results on a 52/53-week format.

Forward-Looking Statements

This press release contains forward-looking statements that include risks and uncertainties, including, without limitation, all statements related to future financial and business performance, market opportunity and plans to grow our business. Words such as "expect," "anticipate," "believe," "project," "will" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon our current expectations. Forward-looking statements involve risks and uncertainties. Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to commodity prices, general economic conditions, consumer spending (particularly spending by high-end consumers), product assortment...


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