Financial Reports: Blue Nile, Golfsmith

Online jeweler Blue Nile posted sales of $73.7 million, an increase of 2.2%, for the second quarter ended June 28. During last year’s second quarter, Seattle-based Blue Nile recorded sales of $72.1 million.

But net income dropped 15.3%, to $3.2 million, from $3.78 million a year ago.

CEO Diane Irvine said in a release: “We are pleased that our disciplined focus on profitability across the business enabled us to deliver earnings that exceeded our expectations.”

Direct Sales Down at Golfsmith

Golfsmith International Holdings reported net sales of $130 million for the second quarter ended June 28 — a 4% rise from the $125 million reported for the second quarter of 2007.

Sales figures include revenue from 12 stores opened in fiscal 2007 and a slight increase in same-store sales. But the Austin, TX-based golf equipment cataloger/retailer reported a 9.3% decrease in direct sales. Net income rose 26.4%, to $8.6 million, up from $6.8 million for the second quarter last year.

Goldsmith chairman/CEO Martin Hanaka said in a release: “We were pleased with our second quarter results, especially considering the state of the consumer and a promotional sporting goods sector. Through selective promotions and prudent inventory investments, we achieved slightly positive same-store sales and net income growth of 26%.”

Hanaka said Golfsmith will continue to focus on controlling expenses and managing inventory, as well as “executing on carefully managed promotions to drive sales.”

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