Things not so blue at Bluefly.com
Bluefly, Inc., an Internet retailer of designer fashions at outlet store prices, posted net revenue growth for Q4 2000 of nearly 87%, while its net loss narrowed for the first time. Bluefly`s net revenues increased to $5.7 million from $3 million in Q4 1999. Bluefly`s net loss for the fourth quarter of 2000 decreased to $5.3 million, from $5.7 million or $1.20 in the fourth quarter of 1999.
For the year, net sales increased more than 242%, to $17.5 million in 2000 from $5.1 million in 1999. Net loss for the year increased to $21.1 million in 2000 from $13.1 million in 1999. Additionally, Bluefly`s total customer base grew by 236% in 2000 to over 185,000 from under 55,000 in 1999.
"The new records Bluefly set this quarter are meaningful because they are all based on metrics that help determine our profitability," says Ken Seiff, Bluefly, CEO. "The strong increase in the average order size coupled with an increase in the number of repeat customers demonstrate to me that we are providing a more compelling shopping experience for our core customers. I am also pleased that the business was cash flow positive in the month of December. The fact that we narrowed our quarterly loss for the first time suggests to me that we have turned a corner," Seiff says. Other significant indicators include:
—Gross margin in the fourth quarter of 2000 increased to an all time high of almost 25%.
—Selling, general and administrative expenses grew by less than 7% in the fourth quarter of 2000 despite nearly 87% revenue growth.
—New customer acquisition cost decreased by nearly 48% to an all time low of approximately $49 in the fourth quarter of 2000 from approximately $95 in the fourth quarter of 1999.
—Repeat customers accounted for 50% of the revenues in the fourth quarter of 2000, up from 35% during the same period a year ago.
—Average order size of all Bluefly customers grew by over 30% to approximately $121 in the fourth quarter of 2000 from approximately $93 during the fourth quarter of 1999.
—Gross revenue per average monthly unique visitor grew 82% to $5.03 in the fourth quarter of 2000 from $2.76 in the fourth quarter of 1999.
—As a percentage of net revenues, advertising expenditures in the fourth quarter of 2000 were at their all time best. In the fourth quarter of 2000, Bluefly spent approximately 38% less on advertising than it did in the same period a year ago.
Back...
