Bluefly’s sales are up 8% in quarter, but loss is up 73%

Sales at Bluefly Inc., one of the few remaining pure-play Internet retailers, increased 8% in the first quarter to $8.25 million from $7.64 million a year ago, the company reported today. It reported a net loss of $1.84 million for the quarter vs. $1.06 million a year ago.

Bluefly, a seller of discount designer brands, acquired 27,031 new customers in the quarter vs. 24,873 in the same quarter a year ago. Customer acquisition cost decreased to $5.26 from $9.40. Revenue from repeat customers as a percentage of total revenue accounted for 67% of gross sales, the same as last year. Average order size increased to $167.20 from $161.76. Gross margin decreased to 22.5% from 32.7%.

The company said the reduction in gross margin and profit was the result of excess fall and winter inventory which it had to mark down to sell in the quarter.

“The first quarter of 2003 was particularly difficult for many retailers because of the state of the economy and the war," said Ken Seiff, CEO. "In light of this, I am pleased that Bluefly was able to increase its net sales and cost effectively grow its number of new customers. We are now acquiring customers for $5.26, which is significantly less than the gross profit of that first order."