Blue Nile Reports Double-Digit Q4 and Full-Year Sales Increases

Blue Nile, Inc. said Thursday that year-over-year net sales increased 11.5 percent to $114.8 million for the fourth quarter of 2010. Operating income for the period, ended January 2, rose 11.8 percent to $9.2 million. Net income increased 13.6 percent to $6.2 million for the period.

For the full year, the online diamond and jewelry retailer said net sales increased 10.2 percent to $332.9 million. Operating income rose 10 percent to $21.3 million. Net income for the year increased 10.5 percent to $14.1 million.

“Blue Nile delivered excellent fourth quarter results, driven by the strongest holiday sales season in our history,” said Diane Irvine, CEO of the Seattle-based company. “As we look ahead in 2011, we are well positioned to capitalize on the significant growth opportunities that we see for our business in the U.S. and international markets.”

Financial highlights include the following:

* For the fourth quarter, international sales grew 30.8 percent to a record level $15.3 million. Excluding the impact from changes in foreign exchange rates, international sales increased 27.4 percent. For the full year, international sales totaled $43.3 million, a 30.4 percent increase compared to 2009 sales. Excluding foreign exchange rates, international sales increased 23.2 percent for the fiscal year.
      
* Gross profit for the fourth quarter totaled $25.3 million, which was an all-time quarterly record. As a percent of net sales, gross profit improved 30 basis points to 22 percent compared to 21.7 percent for the fourth quarter of 2009. Gross profit for the year totaled $71.9 million, which represents a record gross profit.

In its financial guidance for the first quarter of 2011, ending April 3, the company said it expects net sales to be between $76.0 million and $78.5 million. For fiscal 2011, it expects double-digit growth.

Swatch Group 2010 Sales Sets New Record

The Swatch Group reported Wednesday that sales for 2010 totaled 6.4 billion Swiss Francs ($6.6 billion), an increase at constant exchange rates of 21.8 percent over 2009 and 12.7 percent over 2008, despite capacity bottlenecks and adverse exchange rates. At constant exchange rates, the increase was 28.1 percent.

“The extraordinary strength of our brand portfolio was again reflected in an excellent performance by the Watch segment in practically all markets and price segments,” the company said in a statement. “Outlook remains optimistic in the entire year 2011 for further strong organic sales growth.”

The company’s Watches & Jewelry segment reported a 21 percent year-over-year gain at constant exchange rates, with indications that double-digit growth will continue into at least January. The company has a far reaching group of watch brands, from mass market to luxury: Breguet, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Tiffany & Co., Longines, Rado, Union Glashütte, Tissot, ck watch & jewelry, Balmain, Certina, Mido, Hamilton, Swatch, Flik Flak, Endura and Tourbillon.

The production segment of the company, which supplies movements and components to third-party watchmakers in Switzerland and around the world, reported an increase of 7.5 percent for the year.

The electronics segment, which supply electronic systems used in watchmaking and other industries and in the field of sports event timing, reported an 11.7 percent gain, year-over-year.

The company also it expects an improved operating margin compared to the previous year as well as higher net profit for the year, despite an unfavorable currency conditions.

The decline of the dollar and the Euro caused a three percent drop in revenue, the company said. But despite this issue, Swatch Group said it expects strong growth in 2011.

“The Swatch Group will further generate dynamic and organic sales growth in 2011 and continue investment in its distribution and the expansion of its production capacities. the company said. “Sales in January 2011 are already exhibiting a positive trend with double-digit growth in local currencies. The optimistic expectations are supported by the Group’s strategic positioning in all market segments and its geographic presence throughout the world.”