Bluefly.com increases profit, lowers customer acquisition costs in Q1

Online discount fashion retailer Bluefly Inc. says that in the first quarter 2001 its gross profits increased 92% to $1.283 million from $668,000 in Q1 2000. The company says the increase in profits was due to an improvement in gross margin and net sales. Gross margin was 27.6% in Q1 2001 up from 17.9% a year ago. Net sales grew more than 24%. Net sales increased to $4.6 million from $3.7 million in Q1 2000. Bluefly attributes the growth in net sales to an increase in repeat customers, which accounted for 56% of total sales compared to 40% in the same period last year, and an increase an average order size, which grew 30% to $129 from $99 last year. Bluefly’s operating loss for the quarter decreased to $3.9 million from $5.7 million last year. Operating losses were down due to the gross profit increase, a 70% reduction in advertising expenses and more efficient customer acquisition.