Bluefly Inc, a leading online retailer of designer brands, fashion trends and superior value announced strong growth in revenue and margin levels for the second quarter of 2006.
Highlights for the second quarter of 2006 include the following:
-- Revenues increased by approx. 39.6% to $16.8 million from $12.0 million in the second quarter of 2005.
-- Gross margin expanded by 330 basis points to 42.0% from 38.7% in the second quarter of 2005.
-- Gross profit increased by 51.5% to $7.0 million from $4.7 million in the second quarter of 2005.
-- Operating loss increased to $1.8 million from $1.0 million primarily as a result of three items: $611,000 of expense reported in connection with employee stock options as a result of the adoption of SFAS123(R); executive bonuses in the amount of $675,000 paid in connection with the recent financing; and a year-over-year incremental increase of $505,000 in spending related to marketing and advertising.
-- Average order size increased by nearly 15% to $248.32 from $216.09 in the second quarter of 2005.
-- The cash balance was approximately $24 million, up from $9.4 million at year end 2005, as a result of the Company's recently announced financing.
-- Net loss increased to $1.9 million from $1.2 million. Loss per share figure for the second quarter of 2006 includes a non-cash charge of $3.9 million related to the deemed dividend related to the beneficial conversion of Series F Preferred Stock. Accordingly, loss per share increased to $0.17 per share (based on 40.3 million weighted average shares outstanding after preferred stock dividends) from $0.15 per share (based on 15.4 million weighted average shares outstanding after preferred stock dividends).