Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Blue Nile (NASDAQ:NILE)

Q3 2012 Earnings Call

November 01, 2012 5:00 pm ET

Executives

Nancy Shipp

Harvey S. Kanter - Chief Executive Officer, President and Director

David B. Binder - Chief Financial Officer

Analysts

Andrew Ruud - Morgan Stanley, Research Division

David Wu - Telsey Advisory Group LLC

Paul Swinand - Morningstar Inc., Research Division

Benjamin Abrams - Deutsche Bank AG, Research Division

Operator

Good afternoon, ladies and gentlemen. My name is Kendra, and I will be your host operator on this call. [Operator Instructions] At this time, I would like to introduce Nancy Shipp, Director of Investor Relations of Blue Nile.

Nancy Shipp

Good afternoon, and thank you for joining us on our conference call today to review our third quarter 2012 financial results. With me today are Harvey Kanter, President and Chief Executive Officer; and David Binder, Chief Financial Officer. Both will be available for Q&A following today's prepared remarks.

Before we begin, I'd like to remind you that we will make forward-looking statements during the call regarding the company's future performance. These statements are only predictions based upon assumptions that are believed to be reasonable at the time they are made and are subject to significant risks and uncertainties. You should not rely on these forward-looking statements as representing our views in the future, and we undertake no obligation to publicly update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed on this call. Our quarterly reports on Form 10-Q, our annual reports on Form 10-K and other forms on file with the SEC identify important risks and uncertainties that you should consider when making an investment decision regarding Blue Nile, and they may affect whether our forward-looking statements prove to be correct.

Also, please note that during the course of this conference call, we may discuss certain non-GAAP financial measures as we review the company's performance. We will discuss non-GAAP free cash flow, which is defined as net cash provided by or used in operating activities or operating cash flow, less outflows for purchases of fixed assets, including internally used software and website development. We will discuss international sales on a constant exchange rate basis. And we will also discuss non-GAAP adjusted EBITDA, which is defined as earnings before interest and other income, taxes, depreciation and amortization adjusted to exclude the effects of stock-based compensation expense. Please refer to the Investor Relations section of our website to obtain a copy of our earnings release, which contains reconciliations of non-GAAP measures to the nearest comparable GAAP measures.

Now I'd like to turn the call over to Harvey.

Harvey S. Kanter

Thanks, Nancy. Good afternoon, and welcome to Blue Nile's Third Quarter Earnings Conference Call. We are pleased to announce revenue growth of 19.8% this quarter, which demonstrates consistent and meaningful year-over-year sequential growth quarter-to-quarter throughout 2012. These results clearly demonstrate the success we're delivering in the execution of our long-term strategy to reaccelerate growth in the business. Perhaps, even more exciting is the improvement in bottom line performance as we drive this growth.

For the quarter, we are posting earnings per share of $0.14, up from $0.13 in the third quarter of last year. As compelling as this story is, I want to emphasize that we are still in the early stages of the execution of our long-term strategic plan. We are encouraged by the increasing momentum and the confidence in the strategy our results continue to build. With the knowledge I am being a little redundant, I want to once again review the long-term strategy we are executing and which underscores the power of our business model to drive growth and gain market share.

The first part of our strategy focused on the engagement ring customer in the United States. This represents 60% of our revenues in the third quarter and is currently the fastest-growing part of our business. Our value proposition is clear. We offer the most compelling selection of diamonds and engagement ring settings and the best value hands down. We provide education and guidance that empowers our customer to select the best products at tremendous value. Our website enables deep search and discovery of loose diamonds and coupled with extensive customization of the settings. Our diamond jewelry consultants create a world-class experience, assisting our customers and assuring they are getting the best possible ring for this incredibly important emotional life event.

Beginning this year, we invested our margin structure to accelerate growth. And as the market price of diamonds stabilized from a year ago, we've seen really positive results. In the third quarter, revenue growth from the sale of our U.S. engagement products accelerated to 31.5%, the highest quarterly growth we've seen in 7 years. This impressive result is compelling confirmation of the power of Blue Nile's business model.

The second part of our strategy focuses on the non-engagement jewelry customer in the United States. Here, we are investing in greater marketing to drive visitors to our website and to acquire new customers by offering a carefully curated assortment of products that appeal to the female shopper.

In the third quarter, we finalized our plans and began to launch a small number of these new items just for the holiday season. Revenue from non-engagement jewelry products in the U.S. grew by 12%, a very significant improvement from the 1.7% growth rate in the second quarter. Here, again, I must emphasize caution because even with the forthcoming changes, it is important to recognize the acceleration of growth came through successful marketing and promotions of our core line of diamond jewelry and were not yet driven in a very meaningful way by the expansion of our assortment. We are encouraged by our ability to drive growth of our long-standing styles in a non-holiday period and even more excited by the new customers we are brought on through our acquisition efforts and now the new offer they will experience on our site.

The third and final part of our strategy focuses on our international markets. Here, we are leveraging the aggressive investments I have spoken of made in engagement products and by building localized capabilities on our websites, in our call centers and in product fulfillment. This year, we launched websites in Japanese, Spanish and French, and this now brings the number of languages on our site to 6, including simplified and traditional Chinese. In all of these languages, we offer access to our world-class local language service agents through our call centers in Seattle; Dublin, Ireland; and now in Mainland China. While we're excited by the growth opportunity offered by these investments, our international business contracted by 3% in the quarter. This result was primarily driven by difficult comparisons from a number of extraordinary international sales from the third quarter of last year. Excluding these extraordinary sales, revenue for our international business showed double-digit growth. We remain incredibly encouraged by the meaningful return to growth in Canada, as well as the continued growth in Asia as at a great opportunity. We are pleased with the progress we've made to late -- laid to date in the execution of our strategy to drive growth across all 3 of these businesses and look ahead to the fourth quarter and beyond to continue to make great strides and to build momentum.

For engagement, one of the most exciting elements this quarter is last week's exclusive worldwide launch of our bridal line with Monique Lhuillier, the international, renowned, fashion bridal designer. Monique's engagement and wedding band collection is inspired by her as the romantic couture bridal collections she brings to market. The launch comprises a thoughtfully curated assortment of engagement rings and wedding bands that reflects youthfulness of our core engagement consumer and a level of sophistication, elegance and femininity that has become a hallmark to the design aesthetic of the Monique Lhuillier brand. The collection is made with premium-quality platinum and set in Blue Nile's world-famous diamond assortments. Each piece is adorned with a pink sapphire, representing Monique Lhuillier's trademark accent and symbolizing a blushing bride. Never before in our history have we partnered with such a well-known designer, and this underscores the commitment we've made to evolving the Blue Nile brand and broadening its awareness among our youthful women and consumers. Monique's following for design and romance ultimately creates one of the most innovative and sophisticated offerings ever brought to the bridal market. Our reputation for our quality and customer service combined with the ability for our customers to create a designer engagement ring that is unique to them is absolutely remarkable.

In non-engagement jewelry, merchandising is incredibly important. Our merchandise team continues to work incredibly hard to bring to market the assortment they developed to wow the customer and now showcase those products just in time for the gift-giving holidays. This mix across diamond jewelry, precious and semi-precious stones and metals, plus the classic pearl category is an evolving mix of product. The assortment will now launch and measurably impact our fourth quarter, as well as being a springboard for our long-term merchandising strategy going into 2013.

Strategically in diamond jewelry, we have been working hard to further refine and define the assortment and go-to-market strategy, extending our core business by leveraging our compelling business model around the value we bring to all things diamond. We have evolved our assortment in precious and semi-precious stones and metals, plus the pearl category, and this assortment and go-to-market strategy will now extend our mix to not only the core customer but importantly, new customers we are now acquiring. This opportunity in the total addressable market is very meaningful. We are driving the mix to give greater distinction to our assortment and to create an updated fashion mix for new consumers.

Our goal is not to be just broader but more importantly, to be more in tuned with the unique elements this core consumer expects. Over time, we will move faster, address market trends better and be more reactive in our product and further define proprietary designs, ultimately driving the opportunity to set Blue Nile even further apart. These goals drive the initiatives of our merchants, as they bring to market a more curated look and point of view differentiating Blue Nile.

For the holidays, you will see many elements of this evolving curated mix, including diamond necklaces and earrings, precious stone, rings and bracelets, sterling and gold chains, plus Tahitian and Akoya pearls and more. We are excited about this offer, as we bring to market our editor's picks and of course, new holiday arrivals. Our new assortment includes drop, tassel and threader earrings; diamond's for black tie and cocktail moments to casual denim. And our gemstones will bring an incredible array of color to dazzle at any cocktail party. At last and certainly not the least is our red carpet extraordinary pieces, which include offers in jewelry from diamonds to gems and pearls and precious metals and more as well. Talk about a wow moment. I know you will see an exciting moment here on the holidays at Blue Nile.

In our traditional and international markets, we continue to build our capabilities to serve customers in Mainland China through our partnership with a local retailer, as well as through our now own office in Shanghai. In Canada, we recently launched a greater assortment of engagement ring settings, as well as non-engagement jewelry items. We believe these capabilities and the assortment expansion will further enhance our international business.

Last but not least is our evolving leadership position in social media. How we engage our customers and our leading position in creating dialogue with consumers on Pinterest, Facebook and other social media has struck an incredibly consistent cord with our fans and customers. Some significant social media milestones are approaching now just over 24,000 Pinterest followers and exponentially being bigger than any jeweler on Pinterest. And on Facebook, in the last 60 days, our followers have grown by 20%, which underscores the affinity for how we represent the Blue Nile brand and the affinity they have to it.

I am pleased with our progress to date. I am so proud of the work our team has accomplished. They are working very hard to implement changes we have planned, and we continue to evolve as a company. It's an incredibly exciting time to be at Blue Nile. We have a great group of associates, and we have great expectations for the holidays. And we're looking forward to the extraordinary holidays as we all celebrate life's special moments.

I would now like to turn the discussion over to David for the financial review of our third quarter's performance.

David B. Binder

Thanks, Harvey, and welcome to everyone on the call this afternoon. As Harvey mentioned, we are excited to report solid results in the third quarter with accelerating revenue growth in expanding earnings per share. Our strategy is clearly on track, and with continued steady execution, coupled with exciting product offerings for the holiday season, we believe we are well positioned to achieve our goals in 2012. Now turning to the details of the financial performance in the third quarter. Net sales totaled $89.8 million, representing an increase of 19.8% versus the third quarter of 2011. This result represents significant momentum in our growth rates, rising from 3.6% in the first quarter and 13% in the second quarter. In addition, we continue to see significant growth in other key metrics, with both new customers to Blue Nile and total orders growing by more than 20% in the third quarter.

U.S. engagement sales for the third quarter grew by 31.5% to $54.1 million compared to $41.1 million in the third quarter of 2011. This quarterly result represents the highest growth rate in sales of engagement rings and loose diamonds that we've seen in over 7 years. We are further encouraged by the broad base of growth we're seeing in the sales of these products, with greater growth coming from our core price points below $25,000.

U.S. non-engagement sales for the third quarter grew 12% to $21.8 million compared to $19.4 million in the third quarter of 2011. As with our engagement business in the U.S., we are encouraged by the sequential increase in growth rates rising from 1.3% in the first quarter and 1.7% in the second quarter. Most of the growth this quarter came from the sale of classic diamond jewelry. This had been an area of weakness for us earlier this year, and the turnaround in the third quarter was primarily driven by marketing and greater promotion. As we enter the fourth quarter, we are excited to build on this momentum by launching new holiday products and driving greater traffic to our website.

International sales for the third quarter decreased 3.3% to $13.9 million compared to $14.4 million in the third quarter of 2011. On a constant-currency basis, international sales decreased by 1.5%. It' is important to note that the weakness in our international business came from very high value orders. In the third quarter of 2011, we generated $2.5 million in revenue from orders valued over $100,000 versus generating $156,000 in revenue in the third quarter this year at those price points. Excluding these extremely high-value sales, revenue in our international business grew by a double-digit growth rate. While Europe continues to be a challenge for us, we remain positive about our growth opportunity in Asia Pacific and are further encouraged by our return to positive growth rates in Canada after 4 quarters of declines.

For the overall business, gross profit was $16.9 million in the third quarter, up by $2.1 million from our result in the third quarter of 2011. Gross profit as a percentage of net sales was 18.8% in the third quarter of 2012 compared to the third quarter last year of 19.8%. The decrease in gross profit as a percentage of net sales resulted primarily from a shift in the mix of our revenue to the lower margin engagement products. The mix of revenue from engagement grew to 72.8% in the third quarter of 2012 versus 70.7% in the same period last year.

Selling, general and administrative expenses increased 19.1% to $14.3 million in the third quarter of 2012 compared to $12 million in the third quarter last year. Total SG&A expenses as a percentage of net sales equaled 15.9% in the third quarter this year compared to 16% in the same quarter last year, representing a slight improvement in efficiency. Within our SG&A total, marketing expense equaled 5% of revenue in the third quarter this year, down from 5.7% in the second quarter this year and in line with the level of spending in the third quarter last year.

Operating income for the third quarter totaled $2.7 million compared to $2.9 million in the third quarter of 2011, down by $200,000. Gross margin increased by $2.1 million, and this was offset by higher overall spending in marketing and fixed G&A. Net income totaled $1.7 million. Third quarter earnings per diluted share equaled $0.14 compared to $0.13 in the third quarter of 2011. Net income per diluted share for the third quarter of 2012 includes stock-based compensation expense of $0.06 compared to $0.08 for the third quarter of 2011. Non-GAAP adjusted EBITDA for the third quarter of 2012 was $4.8 million compared to $5.4 million for the third quarter of 2011. We ended the third quarter with cash and cash equivalents of $30.2 million compared to $40.2 million in the prior year, representing a decrease of $10 million.

Over the past 4 quarters, we spent a total of $39.5 million in repurchasing 1.5 million shares. Of this total, we spent $28.9 million in the third quarter of 2012 purchasing 1.1 million shares. Cash flow from operations totaled $25.6 million over the past 12 months, and we generated $4.8 million in cash from operations in the third quarter this year.

Our inventory balance at the end of the third quarter equaled $28.9 million compared to $23 million at the end of the third quarter last year, an increase of $5.9 million. Compared to the prior quarter this year, this represents an increase of $2.1 million. We increased our inventory level in the third quarter, and we'll continue to increase it through November this year in anticipation of our sales this holiday season.

Now turning to our guidance. For the fourth quarter of 2012, we expect net sales between $140 million and $153 million and earnings per diluted share between $0.44 and $0.50. Given this guidance for the fourth quarter, for the full year of 2012, we expect net sales to be between $404 million and $417 million and earnings per diluted share between $0.70 and $0.75. Our guidance for the fourth quarter reflects cautious optimism, as we recognize that uncertainty in the macro environment may influence our performance.

We anticipate ongoing strength in the sale of diamond engagement products even as the year-over-year price declines of loose diamonds continues to moderate. Additionally, as we enter the holiday season, we expect an acceleration in the growth rate of our non-engagement jewelry through expanding assortment and greater marketing.

I'll now turn the call over to the operator, and we're happy to take any questions.

Question-and-Answer Session

Operator

[Operator Instructions] And your first question is from Andrew Ruud.

Andrew Ruud - Morgan Stanley, Research Division

I'm just wondering as we going into the fourth quarter, do you see your customer acquisition more as to kind of lower pricing or higher marketing spend or both relative to kind of what we've seen in Q4 of last year?

David B. Binder

Andrew, it's David. So fourth quarter represents the biggest opportunity for us to increase customer acquisition, and we believe that we will accelerate growth rates there through increased marketing as well as through the expanded assortment that we're bringing on. The increase in products that we're bringing on across price points gives us an opportunity to market more broadly and to acquire a broader set of customers.

Andrew Ruud - Morgan Stanley, Research Division

Okay. And then just, I guess, relative to what you've said before, what percentage of the non-engagement jewelry in the fourth quarter is going to be branded versus non-branded?

Harvey S. Kanter

Andrew, that's the only true brand at this point we're carrying in the mix is the Monique Lhuillier brand. And the balance of the new mix is developed in-house with our current supplier structure.

Operator

And your next question is from David Wu.

David Wu - Telsey Advisory Group LLC

First, engagement business clearly remains very solid, and I was wondering how much of the growth do you think is driven by your improved value propositions given the decline in diamond prices and how much do you think was attributed more to the incremental sales tied to your private-label credit card. And could you perhaps provide any color around the sales volume that was generated by the new card?

Harvey S. Kanter

David, this is Harvey. We really look at no silver bullets, so to speak, for the growth of the engagement business. There's really 4 critical things that are around that business that are driving it. One is the exclusive diamond supply we have, which is really continuing to grow. As others around us struggle, we are getting access to a greater level of exclusivity and growing our diamond count. Second is the marketing strategy, which we put in place around SEO, and the initiative's really starting to work. Third is our own investment in pricing and really the investment we've made in margin is layered onto the secular trends in the tailwinds we've been provided by the year-over-year changes. David will cover off the Alliance credit issue.

David B. Binder

Thanks, Harvey. If you remember we launched our new customer financing program really at the end of the second quarter, and we are definitely seeing that it's performing better than we expected. And we're back, what I would say, our historic high levels of consumer financing. It's definitely a piece of the growth that we're seeing in engagement, but I wouldn't say it is the biggest factor driving the improved performance. I think looking at what's driving it, you'll have to go back to Harvey's comment that has to do with the diamond supply, the marketing we're bringing to the site and the macro trends with more stability in the economic environment and better supply pricing within diamonds.

Operator

Next question is from Paul Swinand.

Paul Swinand - Morningstar Inc., Research Division

Quickly on the customer acquisition, is it fair to assuming -- maybe this is a crazy question, but is it fair to assume that the engagement business is almost all new customers?

David B. Binder

This is David. The engagement business definitely skews more heavily to new customers, but we do see customers buying engagement products that have purchased with Blue Nile in the past. So you really can't assume that it's all new customers.

Paul Swinand - Morningstar Inc., Research Division

Okay. And then I realized in the past you said wait for the end of the year for the average price disclosure in the 10-K, but the non-engagement business you're saying shifted to, if I've understood the prior comments on the call, shifted to more diamond product but less non-diamond product. Was that right? Did that raise the average price then?

David B. Binder

In the third quarter, there was a couple of dynamics. First of all, in the overall business, we shifted our mix towards engagement, which has a higher average price point. So that's affecting the metrics first and foremost. Within the non-engagement business, we did see better performance in diamond jewelry, which tends to have a higher price point.

Paul Swinand - Morningstar Inc., Research Division

But then is it the -- but the engagement diamond business that affected the gross margin or is it both the diamonds and the engagement and the non-engagement?

David B. Binder

The biggest factor in the overall gross margin rates is going to be the shift towards engagement. Within non-engagement, we saw some margin contraction because of the shift towards the diamond products. But that's not really the biggest driver behind the margin shift from last year.

Paul Swinand - Morningstar Inc., Research Division

Okay. And then just going into the fourth quarter, I guess I would have -- I was thinking that with the comeback in your pricing advantage and the shift to more I would say everyday American's price points being more dominant rather than the higher price points that you talked about earlier. I thought that would have lifted the gross margins a little more in the fourth quarter.

David B. Binder

I think that our guidance for the fourth quarter is consistent with the plan all along. But we do expect gross margins to improve in the fourth quarter, primarily from a mix shift in our revenue away from engagement towards non-engagement. I think it is important to remember that we still are in a cycle of investment for greater growth. So overall margins in the business are continuing to be impacted by higher marketing spend, as well as really lean pricing to make sure that we're acquiring customers. Our primary focus right now is customer growth, revenue growth and then building a greater business through the lifetime value of new customers we acquire.

Operator

[Operator Instructions] We have a follow-up question from David Wu.

David Wu - Telsey Advisory Group LLC

Sorry, I think we got cut off a little earlier. But my -- in terms of my second question, the fourth quarter sales guidance, that assumes at least 25% growth, which obviously is an acceleration from third quarter, and I was wondering if your outlook implies the October sales did accelerate from the third quarter.

David B. Binder

David, it's David. Well, we certainly are considering every data point in providing guidance for the fourth quarter, so we've got good read on October sales. I would also note that the bottom end of our range is 25%. We have a fairly wide range, so that really indicates that we are optimistic in the acceleration and growth in our business, and we're feeling very good about it from where we're sitting today. We also are somewhat cautious in terms of how wide that range can be. So we're trying to be responsive to macro trends shifting negative and what that could mean to the business. And that's reflected in the high end, low end being so wide.

David Wu - Telsey Advisory Group LLC

Got it. And can you talk about your marketing initiatives for the holiday, how you plan to drive the outperformance of the non-engagement business? And do you think you could still achieve your full year earnings guidance if non-engagement does not outperform and thus, you could still see a gross margin contraction in the fourth quarter?

Harvey S. Kanter

It's Harvey. I'll address the first half, and David will address the second half. The reality is that what we've talked about on these calls and actually, when we've met one-off is that investments that we're making in trying to transition how we present the brand and the experience that the consumer will have, as well as some of the efforts in SEO and SCM will evolve basically the ability to create awareness and trial through the acquisition, bringing them to the website. And then if you've been on our website even as recently as of today, you would have seen the first launch of the holiday evolution, and it will continue to evolve over the next 2 to 3 weeks. But what you'll see is a greater level of life and for lack of a better way to say it, emotion being created on the website to address the holidays. And that in combination with some of the more, what I would call, science of really creating awareness and trial with the customers, all put together, should accelerate really the non-engagement business where those efforts are distinctly different than the success we've had in the engagement side of the business.

David B. Binder

And this is David. I can answer the second part of the question. I would say that our EPS guidance for the fourth quarter certainly anticipates the non-engagement part of our business picking up its relative size and that has gross margin implications. It becomes difficult if that part of the business doesn't perform well at all. We feel like we've captured that in our guidance range, but there's always caution that things could be better but they also could be worse than what we are anticipating. If we have a lot of room in our cost structure to adjust, if we don't see the sales coming in, is in the fourth quarter, we do anticipate spending more money to market to drive those customers. So we do have some measures we can take to try to protect earnings, but the overall biggest driver for us in the fourth quarter is that mix shift and what it means for our gross margin.

Operator

Your next question is from Ross Sandler.

Benjamin Abrams - Deutsche Bank AG, Research Division

This is Ben filling in for Ross. Just 2 quick questions. So I understand why the gross margins were down year-on-year, but they were actually -- the compression was actually much less than we saw the last 2 quarters, so could you maybe parse out what is coming from mix, what's coming from aggressive pricing? And then secondly, you guys have said that the free cash flow dynamics are pretty similar for the non-engagement business. Now last quarter obviously, there were 2 huge headwinds you guys were facing in the fourth quarter. So would it be fair to assume that you guys can generate similar levels of free cash flow in 4Q '12 that we kind of saw in 2010 and prior?

David B. Binder

It's David. So first one, on the free cash flow question, the dynamics in our business, the way working capital works for us is intact, so we don't necessarily give guidance for free cash flow for the full year, but you can expect similar dynamics. I think looking back historically is your best guide there. Regarding the gross margin percentage in the third quarter, the performance actually -- the year-over-year declines have been abating, and I think that was the point of the question. We have shifted our mix more towards engagement. But what we're seeing with greater performance in our core price points, we're growing sales in parts of engagement that naturally have a higher margin. Typically, when you move up to higher price points, the gross margin as a percentage of revenue comes down. And that mix within engagement has been shifting more towards those core price points, which are lower end and carry naturally a higher gross margin percentage.

Operator

And there are no more questions at this time.

Nancy Shipp

Thank you all for joining us today, and we look forward to talking to you next quarter.

Operator

This does conclude today's conference call. Thank you for your participation at this time. You may now disconnect.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Blue Nile Management Discusses Q3 2012 Results - Earnings Call Transcript
This Transcript
All Transcripts