Expenses cut Blue Nile profits

Seattle – Rising selling, general and administrative (SG&A) expenses resulted in shrinking profits for Blue Nile Inc. during the fourth quarter and fiscal year 2014, despite healthy sales growth. In the fourth quarter, net income dropped 2% to $4.83 million from $4.93 million.



Net sales rose 8% to $157.47 million from $145.96 million. During the full fiscal year, net income fell 12% to $9.73 million, from $10.87 million. Net sales grew 5% to $473.51 million, from $450 million.



“Our fourth quarter growth continues the positive momentum from the third quarter in spite of what was a challenging quarter for many jewelry retailers," said Harvey Kanter, Blue Nile chairman, CEO and president. "While these results are below our expectations, the above-industry growth demonstrates that we made progress and gained share.”



For the first quarter of fiscal 2015, net sales are expected to be between $107 million and $110 million. For the full fiscal year 2015, net sales are expected to be between $488 million and $505 million.