Blue Nile (NILE) posted earnings and guidance that disappointed the Street, and traders showed their displeasure in a big way after-hours. Shares fell 26% after trading was initially halted.
The online jewelry retailer posted 30 cents of EPS, 13 cents below analysts’ expectations. Revenues of $112.3 million was below expectations for $123.2 million. The company predicted first quarter earnings of 4 to 7Â cents per share, below expectations for 17 cents.
A variety of factors contributed to the miss, the company said.
“The fourth quarter was challenging for Blue Nile, with weakness in demand from our high end diamond customers and some of our international markets, as well as the continued impact of inflationary pressure on commodity costs. While we managed the business through these headwinds, we implemented components of a new strategy designed to accelerate growth. This plan centers around the acquisition of non-engagement customers, which we believe in the long term will feed growth in our engagement and non-engagement businesses.”
