Bluefly reports 17% growth in net sales

17 Feb '11

5 min read

Additionally, at quarter end:

• Cash and cash equivalents increased to $10.4 million at December 31, 2010, compared to $10.0 million at December 31, 2009.
• Inventory increased to $25.1 million at December 31, 2010, compared to $17.7 million at December 31, 2009. The Company remains pleased with its inventory position, which supports the Company's spring plans.

Results for the full year of 2010 included the following highlights:

• Net sales increased by almost 9%, to $88.6 million from $81.2 million in 2009, primarily as a result of a 12% increase in average order size to $299.98 for 2010, compared to $266.66 in 2009.
• Gross profit margin percentage decreased to 37.5%, from 38.9% in 2009 primarily as a result of an increase in our provision for inventory obsolescence resulting from an overall increase in inventory balances during the year to support the growth of the luxury designer merchandise.
• Total operating expenses increased to $37.0 million from $34.2 million in 2009. However, as a percentage of net sales, total operating expenses decreased to 41.8% from 42.1% in 2009. The increase in total operating expenses was primarily due to the growth of both online and offline marketing expenses (including staff related costs) of $3.9 million as compared to 2009. The increase in marketing expenses represents an investment in top-line growth marketing initiatives such as the Closet Confessions campaign, which was initially developed for distribution on social media outlets and based upon its success later aired on Bravo TV. This planned increase in marketing expenses was partially offset by a reduction in general and administrative expenses of approximately $1.3 million.
• Operating loss was $3.8 million, compared to $2.6 million in 2009.
• Net loss decreased by over 7% to $4.0 million, from $4.4 million in 2009. Loss per share decreased to $0.17 per share (based on 23.7 million weighted average shares outstanding) from $0.31 per share (based on 14.0 million weighted average shares outstanding) in 2009.
• Adjusted EBITDA decreased to a loss of $716,000 compared to an adjusted EBITDA of $878,000 in 2009.

Founded in 1998, Bluefly Inc is a leading online retailer of designer brands, fashion trends and superior value. Bluefly is headquartered at 42 West 39th Street in New York City, in the heart of the Fashion District.

Bluefly Inc

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