Despite the hard times, the online retailer of diamond engagement rings, Blue Nile, has posted a modest increase in sales.

Net sales for the third quarter of $66.9 million increased by 2% in comparison to the corresponding period last year. Despite the tough economic climate, the online diamond jeweler’s net income is growing. Blue Nile reported a net income of $2.6 million, a sturdy 10.3% gain over lst year’s third quarter.

Blue Nile CEO Diane Irvine stated: “Our third quarter results were excellent and reflect continued positive momentum in the business. We returned to top line growth and delivered strong profitability. The Blue Nile diamond jewelry brand is resonating with consumers in the current environment, and we are gaining market share.”

According to the diamond retailer’s report, its cash position increased to $47.5 million during the last quarter, rising from $26.6 million. International sales also grew signficantly, with a record $8.8 million in fine jewelry sales from overseas.

Gearing up for the upcoming holiday season, Blue Nile expects diamond jewelry sales to reach $100 million to $109 million in the fourth quarter.