Gross margin up at Bluefly
Bluefly, Inc. a leading online retailer of designer brands, fashion trends and superior value, announced increased gross margin percentage, continued reductions in operating expenses, operating and net loss, and an increase in adjusted EBITDA for the full year and fourth quarter of 2009.
“I am very proud of what we have been able to accomplish this year.” said Melissa Payner, Bluefly's Chief Executive Officer. “In arguably the most difficult of economic times we have emerged stronger. We were profitable in the fourth quarter and were both adjusted EBITDA and cash flow positive from operations for the year. These results have provided a solid base for growth in 2010. With the added support of our new investors we believe we are not only positioned for growth in 2010, but we will be able to bring our customers an even greater offering of on-trend designer apparel and accessories and introduce new customers to the deal that is Bluefly.”
Results for the fourth quarter of 2009 included the following:
• Net revenue decreased by approximately 11.1% to $24.4 million from $27.4 million in the fourth quarter of 2008, as a result of the Company's planned decrease in inventory purchases for the quarter in response to the overall decline in consumer spending.
• Gross margin percentage increased to 41.3% from 37.0% in the fourth quarter of 2008 as a result of increases in product margin.
• Operating expenses decreased by approximately 15.2% to $9.6 million from $11.3 million in the fourth quarter of 2008. The reduction in operating expenses resulted from a decrease of $597,000 in selling and fulfillment expenses, a decrease of $1.7 million in marketing expenses and a reduction in non-cash share-based compensation expense of approximately $304,000, which was offset by an increase in salary and salary related general and administrative expenses of approximately $972,000.
• Operating income of $449,000 as compared to an operating loss of $1.2 million in the fourth quarter of 2008.
• Net loss available to common stockholders decreased to $148,000 from approximately $1.4 million in the fourth quarter of 2008. Included in net loss is $437,000 of non-cash expense related to the Company's convertible notes. Loss per share decreased to $0.01 per share (based on 14.5 million weighted average shares outstanding) compared to a loss per share of $0.10 per share (based on 13.6 million weighted average shares outstanding) in the fourth quarter of 2008.
• Adjusted EBITDA increased to positive $1.3 million from a positive adjusted EBITDA of $79,000 in the fourth quarter of 2008.
• Average order size increased to $274.83 in the fourth quarter of 2009 compared to $271.98 in the fourth quarter of 2008.
• Cash and cash equivalents increased to $10.0 million at December 31, 2009 compared to $4.0 million at December 31, 2008 primarily as a result of the December 2009 private placement.
• Inventory decreasedto $17.7 million at December 31, 2009 compared to $23.2 million at December 31, 2008.