Tallahassee, FL 11/9/11 (StreetBeat) --Online diamond and jewelry retail Blue Nile Inc. (Nasdaq: NILE) said Tuesday that third-quarter profit fell 33 percent, it offered a weak forecast of future earnings, and the CEO resigned.Blue Nile shares had gained in regular trading, closing up $3.40, or 7.5 percent, at $48.81. They dropped $8.81, or 18 percent, to $40 in after-hours trading following the announcement of the CEO change and financial results.
Blue Nile predicted fourth-quarter earnings of 41 to 43 cents per share and full-year profit of 87 to 89 cents per share. Analysts expected 45 cents per share in the fourth quarter and 97 cents per share for all of 2011.
The company's revenue projections were in line with expectations.
In the third quarter, which ended Oct. 2, net income was $1.9 million, or 13 cents per share. That compared with nearly $2.8 million, or 19 cents per share, a year earlier.
Revenue rose 11 percent to $75 million. International sales grew 55 percent. Analysts expected earnings of 17 cents per share on revenue of $72.6 million, according to FactSet. The company said expenses grew to $12 million from $10.4 million a year earlier. It also repurchased $30.9 million of shares.
Separately, Blue Nile announced that CEO Diane Irvine resigned effective this Friday, and said it would begin a search for a new leader. Irvine was replaced on interim basis by Vijay Talwar, senior vice president and general manager of its international business. No reason was given for Irvine's resignation.
Shares have dropped to $33.08, trading down 32% today.
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