Online diamond retailer Blue Nile Inc is reporting "excellent" sales for the fourth quarter of 2010, with net sales reaching $114.78 million, compared to $102.94 million in the corresponding quarter of 2009, the company announced Saturday.

Gross profit for the quarter stood at $25.3 million, a quarterly record. In the year ending January 2, 2011, the company saw net income of $14.14 million, an increase over the $12.8 million in net income for the fiscal year ending January 3, 2010.

International sales grew 30.8% to $15.3 million, a new record.

According to CEO Diane Irvine, the end of 2010 saw the strongest holiday jewelry sales in the company's history. Irvine said that Blue Nile was "well-positioned" to capitalize on the growth opportunities it saw in the US and international jewelry markets in 2011.

The company projects net sales of $76 million to $78.5 million in Q1 2011.