Bluefly.com’s sales grew 31% last year
Fourth-quarter sales at Bluefly Inc., an off-price Internet retailer of designer fashions, grew 37% to $7.9 million from $5.76 million in the fourth quarter of 2000. Bluefly reports that it achieved positive cash flow for the first time in Q4.
For the fourth quarter of 2001, Bluefly generated positive cash flow from operations of $1.3 million.
For the year, net sales increased over 31%, to $22.95 million from $17.51 million in 2000.
Operating loss for the year decreased by 42% to $11.86 million from $20.6 million in 2000. Net loss, including a one-time, non-cash charge of $13 million related to the conversion of debt and redeemable preferred equity into permanent equity, increased to $25 million from $21.1 million in 2000.
Meanwhile, Bluefly reduced its customer acquisition costs to $18.53 each from $49.53 in Q4 2000 and reduced its advertising budget by 69% from Q4 the prior year, yet attracted 31,000 new customers, 17% lower than Q4 2000. Repeat customers became a more important part of Bluefly’s sales, accounting for 63% of sales vs. 50% a year earlier. And average order size for the quarter increased 20% to $155.54 from $128.89. Gross margin in the quarter increased to 32% from 24.7%.
Bluefly`s total customer base grew by 55% in 2001 to 287,000 from 186,000 in 2000, and the percentage of gross sales from repeat customers for the year increased to 60% from 48%.
Bluefly says it expects to reach profitability in Q4 of this year. It also reports that it has adequate cash to fund operations through June and that it expects to need to raise $5 million in additional capital this year.
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