While its net income between April and June dropped by 43% year-over-year, its revenue climbed by 13% on the strength of its engagement ring sales. Buoyed by the revenue report, Blue Nile stood by its earlier February projections of between $384 and $417 million for the 2012 calendar year and per-share earnings of between $0.70 and $0.85.
Industry analysts had only anticipated that the company would see revenue of about $391 million and that its shares would earn about $0.67, according to Bloomberg Businessweek.
Trading drove shares of Blue Nile to about $32, an 34.7% increase of $8.25 over its pre-report price. At one point on Friday, the stock shot up as high as $35.74.