Taxes hit Blue Nile income in Q3

Seattle –- A switch from an income tax benefit to income tax expense helped drive a reduction in net income at online jewelry retailer Blue Nile Inc. during the third quarter of fiscal 2014. Blue Nile reported net income of $1.65 million, down 43% year-over-year from $2.9 million.



Net sales increased 7% to $105.8 million compared to $98.9 million. The company remains optimistic for the remainder of the year.



"Last quarter, we took steps to ensure that, no matter what, Blue Nile's superior value is absolutely clear,” said Harvey Kanter, chairman, CEO and president of Blue Nile. “We continue to challenge the status quo by providing consumers with the best quality, selection, price, and service in this industry. We are driving stronger brand communication, enhancing usability, and optimizing price which is helping to re-accelerate growth, achieve greater scale, and strengthen our leadership in loose diamond supply. Our results give us greater optimism for the holiday season."