New book by Larry Connors Click here Improve your trading - See how
Third Quarter Results
The Washington-based Blue Nile reported net income for the third quarter of $2.3 million or $0.15 per share, down from $3.0 million or $0.18 per share in the third quarter last year.
Net income per share for the quarter included stock-based compensation expense of $0.07, compared to $0.05 for the third quarter of 2007.
On average, 14 analysts polled by First Call/Thomson Financial expected the company to earn $0.16 per share for the quarter.
Net sales for the quarter decreased 2.9% to 65.4 million from $67.4 million in the prior-year quarter, and missed analysts' revenue consensus of $68.77 million.
The company attributed the decline in sales to the further weakening in the economic environment in the U.S. during the third quarter.
Other Metrics
Selling, general and administrative expenses for the quarter were $9.9 million, compared to $9.7 million in the third quarter of 2007. Selling, general and administrative expenses included stock-based compensation expense of $1.6 million, compared to $1.4 million in the third quarter of 2007.
Gross profit for the quarter was $13.3 million, down from 13.4 million. As a percent of net sales, gross profit was 20.3% compared to 19.8% in the year-ago quarter.
Operating income declined to $3.3 million from $3.6 million in the same quarter last year.
Net cash provided by operating activities totaled $23.0 million for the trailing twelve-month period ended September 28, 2008. Non-GAAP free cash flow was $20.1 million for the trailing twelve-month period ended September 28, 2008.
The company's cash and cash equivalents totaled $26.6 million as of September 28, 2008.
Capital expenditures for the quarter declined to $0.7 million from $1.5 million in the third quarter of 2007.
CEO Comment
Commenting on the results, the company's chief executive officer, Diane Irvine said, "Our top-line growth declined as a result of the further weakening in the economic environment in the U.S. during the third quarter. At the same time, our disciplined focus on managing the business profitably in this difficult retail climate allowed us to achieve our earnings per share guidance."
"We believe that our offering of exceptional diamonds and fine jewelry at a compelling value resonates with consumers especially during difficult times. We are excited about the new diamond, gemstone, pearl and silver jewelry that we are introducing for the holidays. However, our expectation is that this will be a very challenging holiday season based on the uncertainty in the external environment and extremely cautious consumer spending trends," he added.
Year-to-date Results
For the nine-month period, net income declined to $8.1 million or $0.52 per share from $9.9 million or $0.59 per share last year.
Net sales for the period increased to $209.5 million from $207.4 million a year-ago.
Share Repurchase
During the quarter, the company repurchased 593,700 shares of its common stock for $23.2 million. Since the inception of the buyback program in the first quarter of 2005, the company has repurchased 4.4 million shares for a total of $160.0 million.
Stock Movement
NILE closed Tuesday's regular trading session at $28.25, down $0.48 or 1.67% on volume of 375,709 shares. Further, the stock lost $0.07 or 0.25%, and traded at $28.18 in the after-hour trade. The company's stock has been traded at the range of $23.04 to $85.00 for the past 52 weeks, with an average three-month volume of 342,734 shares.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
