Bluefly.com First Quarter Revenues Grow 34% While Gross Profit Grows over 100%.Business Editors NEW YORK--(BUSINESS WIRE)--April 28, 2004 Bluefly, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on SmallCap: BFLY BFLY Bluefly Inc. (stock symbol) ), a leading Internet retailer of designer brands at discount prices (www.bluefly.com), announced today that its net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased by over 34% to $11,114,000 during the first quarter of 2004, from $8,257,000 during the same period a year ago. Gross margins increased to 34.0% in the first quarter of 2004, from 22.5% in the first quarter of 2003. The company's revenue and gross margin growth resulted in a gross profit increase of over 103%. Other financial results for the first quarter of 2004 were as follows (all comparisons are to the first quarter of 2003): -- Net loss decreased by over 38% to $1,130,000 (or $0.15 per share), from $1,840,000 (or $0.25 per share). Net loss per share for the first quarter of 2004 is based on a weighted average of 14,314,722 shares outstanding, while the net loss per share for the first quarter of 2003 is based on a weighted average of 10,982,390 shares outstanding. The reduction in net loss was partly the result of $169,000 of other income recognized as a result of the partial collection of damages awarded to the company in connection with a litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and $261,000 of non-cash other income recognized as a result of the decrease in value of certain warrants issued by the company that are treated as derivative securities Derivative security A financial security such as an option or future whose value is derived in part from the value and characteristics of another security, the underlying asset. for accounting purposes. -- Cash flow used in operations improved over 99% to $18,000, from $2,182,000. -- New customers acquired increased by over 23% to 33,335, from 27,031. -- New customer acquisition cost increased by approximately 104% to $10.72, from $5.26, as the company began a strategy of more aggressively acquiring customers. -- Gross average order size increased over 13% to $189.56, from $167.20. "This quarter represents a very significant step forward for us," said Ken Seiff, Bluefly's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Our gross profit for the quarter more than doubled as a result of our exceptionally strong revenue and gross margin growth, and we are extremely excited about the prospects for continued growth on both these fronts in the future." "We have begun the process of upgrading our merchandise assortment assortment /as·sort·ment/ (ah-sort´ment) the random distribution of nonhomologous chromosomes to daughter cells in metaphase of the first meiotic division. as·sort·ment n. to offer our customers the same trends they see at the finest stores at prices that no traditional department store, specialty store Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" or boutique Boutique A small investment firm specializing in offering specific, but limited services to a select number of individuals. Notes: These investment firms are the alternatives to large financial supermarkets. They provide a highly personalized environment for investing. can come close to matching," added Melissa Payner, Bluefly's President. "The fact that we were able to increase both revenue and gross margin so significantly with a lower inventory investment than we had last year illustrates the impact that this strategy can have throughout our business." About Bluefly, Inc. Bluefly, Inc. (NASDAQ SmallCap: BFLY) operates the world's first full service outlet store An outlet store or factory outlet is a retail store in which manufacturers sell their stock directly to the public through their own branded stores. The stores can be can be brick and mortar or online. for designer fashion, offering products from more than 350 designers at discounts of up to 75% off. With 24/7 access, a 90-day money back guarantee, and technology that displays real-time inventory, Bluefly makes off-price shopping easy and convenient. Bluefly is headquartered at 42 West 39th Street in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , in the heart of the Fashion District. For more information, please call 212-944-8000 or visit www.bluefly.com. This press release may include statements that constitute "forward-looking" statements, usually containing the words "believe", "project", "expect", or similar expressions. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed by the company with the Securities and Exchange Commission, including Forms 8-A, 8-K, 10-Q, and 10-K. These risks and uncertainties include, but are not limited to, the company's history of losses and anticipated future losses; need for additional capital and potential inability to raise such capital; the risk of default by the company under the Rosenthal financing agreement and the consequences that might arise from the company having granted a lien lien, claim or charge held by one party, on property owned by a second party, as security for payment of some debt, obligation, or duty owed by that second party. on substantially all of its assets under that agreement; the potential failure to forecast revenues and/or to make adjustments to our operating plans necessary as a result of any failure to forecast accurately; unexpected changes in fashion trends; cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. variations in the apparel and e-commerce markets; the dependence on third parties and certain relationships for certain services, including the company's dependence on U.P.S. (and the risks of a mail slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. due to terrorist activity) and its dependence on its third-party web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. and fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. centers; online commerce security risks; management of potential growth; the availability of merchandise; the need to further establish brand name recognition; risks associated with our ability to handle increased traffic and/or continued improvements to its Web site; rising return rates; dependence upon executive personnel; the successful hiring and retaining of new personnel; risks associated with expanding our operations; and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the imposition The printing of pages on a single sheet of paper in a particular order so that they come out in the correct sequence when cut and folded. of sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. on Internet sales.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
Three Months Ended
March 31, March 31,
2004 2003
--------------------------
Net sales $11,114,000 $8,257,000
Cost of sales 7,332,000 6,400,000
--------------------------
Gross profit 3,782,000 1,857,000
Gross profit percentage 34.0% 22.5%
Selling, marketing and fulfillment expenses 3,449,000 2,412,000
General and administrative expenses 1,759,000 1,203,000
--------------------------
Operating loss (1,426,000) (1,758,000)
Interest and other income 456,000 6,000
Interest expense (160,000) (88,000)
--------------------------
Net loss $(1,130,000) $(1,840,000)
Deemed dividend related to beneficial
conversion feature on Series C Preferred
Stock -- (225,000)
Preferred stock dividends (1,024,000) (638,000)
Net loss available to common shareholders $(2,154,000) $(2,703,000)
Basic and diluted net (loss)
income per share (after
preferred stock dividends) $(0.15) $(0.25)
==========================
Weighted average shares outstanding 14,314,722 10,982,390
==========================
SELECTED BALANCE SHEET DATA & KEY METRICS-
UNAUDITED
March 31, December
2004 31, 2003
-----------------------
Cash $12,081,000 $7,721,000
Inventories, net 10,482,000 11,340,000
Other Current Assets 2,168,000 1,863,000
Property & Equipment, net 1,525,000 1,659,000
Current Liabilities 9,643,000 8,459,000
Notes Payable to Related Party Shareholders 4,000,000 4,000,000
Shareholders' Equity 12,726,000 10,279,000
Three Three
Months Months
Ended Ended
March 31, March 31,
2004 2003
-----------------------
Average Order Size (including shipping &
handling revenue) $189.56 $167.20
Average Order Per New Customer (including
shipping & handling revenue) $166.90 $153.01
Average Order per Repeat Customer (including
shipping & handling revenue) $202.67 $175.18
Customers Added During Period 33,335 27,031
Revenue from Repeat Customers as % of Total
Revenue(a) 68% 67%
Customer Acquisition Cost (b) $10.72 $5.26
(a) Repeat customer is defined as a person who has bought more than
once from Bluefly during their lifetime.
(b) Customer Acquisition Cost is calculated by dividing total
advertising expenditures (excluding staff and related costs) by
total new customers added. Customer numbers are based on unique
email addresses.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion