Bluefly CEO pleased with Q4 performance

07 Mar '09

3 min read

Bluefly Inc, a leading online retailer of designer brands, fashion trends and superior value, announced continued growth in operating results as well as a reduction in operating and net loss for the full year and fourth quarter of 2008.

Highlights for the full year 2008 include:
• Revenue increased by approximately 5% to $95.8 million from $91.5 million in 2007.
• Gross profit increased by approximately 8% to $35.5 million from $32.7 million in 2007.
• Gross margin increased by 130 basis points to 37.1% from 35.8% in 2007. This increase in gross margin is attributable to increased sales of higher margin products and cost efficiencies of inventory purchases.
• Operating loss decreased 33% to $10.8 million from $16.1 million in 2007 attributable to a decrease in marketing and noncash share-based compensation expenses.
• Net loss decreased by approximately 28% to $11.3 million from $15.8 million in 2007. Loss per share decreased to $0.90 per share (based on 13.4 million weighted average shares outstanding after preferred stock dividends) from $1.21 per share in 2007 (based on 13.1 million weighted average shares outstanding after preferred stock dividends).
• Average order size increased to $279.72 in 2008 compared to $276.58 in 2007.

Highlights for the fourth quarter 2008 include:
• Revenue decreased by approximately 8% to $27.4 million from $29.7 million in the fourth quarter of 2007 primarily attributable to the significant deterioration in the U.S. and global economies during the fourth quarter of 2008.
• Gross profit remained relatively unchanged at approximately $10.1 million compared the fourth quarter of 2007.
• Gross margin increased by 270 basis points to 37.0% from 34.3% in the fourth quarter of 2007 attributable to a decrease in inventory reserves as the prior year included a write-off in the fourth quarter of 2007.
• Operating loss significantly decreased by 79% to $1.2 million from $5.5 million in the fourth quarter of 2007 attributable to a decrease in marketing and non-cash share-based compensation expenses.
• Net loss significantly decreased by approximately 75% to $1.4 million from $5.6 million in the fourth quarter of 2007. Loss per share decreased to $0.10 per share (based on 13.7 million weighted average shares outstanding after preferred stock dividends) from $0.42 per share in the fourth quarter of 2007 (based on 13.2 million weighted average shares outstanding after preferred stock dividends). The decrease in net loss per share is attributable to a decrease in operating loss and a decrease in preferred stock dividends. All 571 remaining shares of Series F Preferred Stock as of September 30, 2008 were converted into common stock during the fourth quarter of 2008.
• Average order size slightly decreased to $271.98 in the fourth quarter of 2008 compared to $274.38 in the fourth quarter of
2007.

“While we continually strive to increase revenues, we arepleased with our performance during the fourth quarter, particularly given the economic downturn and the performance of some of our direct competitors.” said Melissa Payner, Bluefly's Chief Executive Officer. “We believe that as an online pure play we provide a compelling value proposition in this new and challenging economy.”

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