bluenile-ringShares of Blue Nile — the Seattle online jeweler — are up more than 12 percent in Thursday morning trading after the company posted third quarter financial results in which net sales increased 6.9 percent to $105.8 million. Net income was $1.7 million for the quarter, compared to $2.9 million for the same period last year.

In addition, Blue Nile said that it expects revenue of $159 million and $174 million for the fourth quarter, the all-important holiday sales period.

“Last quarter, we took steps to ensure that, no matter what, Blue Nile’s superior value is absolutely clear. We continue to challenge the status quo by providing consumers with the best quality, selection, price, and service in this industry,” said Blue Nile CEO Harvey Kanter in a press release. “We are driving stronger brand communication, enhancing usability, and optimizing price which is helping to re-accelerate growth, achieve greater scale, and strengthen our leadership in loose diamond supply. Our results give us greater optimism for the holiday season.”

Blue Nile’s stock is now trading at $34, giving it a market value of $360 million. The stock is down 27 percent so far this year.

The company said that U.S. engagement sales rose five percent during the third quarter, making up $60.8 million of Blue Nile’s business. International sales — a big push for Blue Nile in recent months — accounted for $21.5 million. Blue Nile finished the quarter with $32.3 million in cash and cash equivalents.

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