Diamond prices affect Blue Nile Q2 results

Seattle – Online specialty jewelry and diamond retailer Blue Nile Inc. reported net income of $2.17 million for the second quarter of fiscal 2014, a 1% drop from $2.2 million in the second quarter of the previous fiscal year. Net sales also decreased 1%, to $1.06.6 million from $108 million.

Blue Nile cited falling diamond prices as having an adverse effect on its financial performance during the quarter.

"The diamond price environment in the second quarter materially impacted our performance,” said Harvey Kanter, chairman, CEO and president. “As a result we executed strategic and targeted price changes to ensure that Blue Nile's superior value is absolutely clear to the consumer. With these changes we are seeing a return to growth, and when diamond prices normalize, we expect to see even greater benefits from ongoing investments we're making in the user experience.”

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