Leading online diamond and jewellery retailer Blue Nile has reported a 5.2% rise in net sales to $473.5 million for the fiscal year ended January 4, 2015, up from $450.0 million for the fiscal year ended December 29, 2013. During the same period, operating income declined marginally to $14.2 million compared to $14.3 million and profits dipped by 10.5% to $9.7 million from $ 10.9 million.

Similarly, during the fourth quarter ended January 4, 2015, sales rose 7.9% to $157.4 million as compared to $146.0 million for the fourth quarter ended December 29, 2013. Operating income for the fourth quarter 2014 totaled $6.9 million, representing an operating margin of 4.4% of net sales compared to $7.2 million of operating income and 4.9% of operating margin for the fourth quarter of 2013. Net income for the fourth quarter 2014 totaled $4.8 million.

The company clarified that the reporting periods comprised 53 weeks and 14 weeks, respectively, as fiscal 2014 contained an extra week. It added that net sales for the additional week was estimated at $5.9 million, which contributed 4.1% of growth for the fourth quarter 2014 and 1.3% for the fiscal year ended January 4, 2015.

Harvey Kanter, Blue Nile Chairman, CEO and President described the results as “below expectations”, but clarified that the company had achieved “above-industry growth” inspite of what it called “a challenging quarter for many jewelry retailers”.

Some of the other highlights of the report are:

• US engagement net sales in 4th quarter up 7.9% to $85.0 million, compared to $78.7 million y-on-y
• U.S. engagement net sales for the fiscal year up 4.1% to $266.4 million, compared to $255.8 million y-on-y
• US non-engagement net sales in 4th quarter up 6.3% to $48.8 million, compared to $45.9 million y-on-y
• US non-engagement net sales for the fiscal year up 4.2% to $126.0 million, compared to $121.0 million y-on-y
• International net sales in 4th quarter up 10.9% to $23.6 million, compared to $21.4 million y-on-y
• International net sales for the fiscal year up 10.8% to $81.1 million, compared to $73.2 million y-on-y

Kanter stated that Blue Nile remains “confident in the underlying strategy; more people are realizing that buying online - and at Blue Nile specifically - provides a superior selection and industry-leading quality at an unmatched price”.

The company expects net sales to be between $107 million and $110 million in the first quarter of 2015 and between $488 million and $505 million during fiscal 2015.