Bluefly’s revenue grows by 26.7%, net loss grows 65.1% in Q2

Revenue at Bluefly Inc., an online retailer of designer brands, increased 26.7% to $12.03 million during the second quarter from $9.5 million in the year-earlier period. However, Bluefly experienced a 65.1% increase in net loss to $1.17 million from $708,000 in 2004’s second quarter. Gross profit increased 22.2% to $4.65 million from $3.8 million a year earlier. Gross margin dropped to 38.7% in the quarter from 40.1% in year-ago quarter. Operating loss rose 27.9% to $1.02 million from $797,000. Bluefly, which ranks No. 123 in the Internet Retailer Top 400 Guide to Retail Web Sites, acquired 29,561 new customers during the quarter, a 16% increase from 25,478 a year earlier. Gross average order size increased 15.2% to $216.09 from 187.52. Despite the increase in net loss, CEO Melissa Payner said the company is in a good position to grow and should continue to yield positive results throughout the year. “We continue to experience growth resulting from the development of the in-season and on-trend merchandising strategy that we began to implement in the spring of 2004,” she said. “We have now exceeded prior year sales comparisons for each of the last eight months.”