Bluefly.com Reports Record Fourth Quarter and Full Year 2000 Results; Loss Narrows While Gross Margin Improves in the Fourth Quarter.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 28, 2001 Average Order Size and Number of Repeat Customers Continue to Grow Bluefly Bluefly, Inc.. (NASDAQ: bfly) is an American electronic commerce company based in New York, New York. As one of the leading fashion and lifestyle e-commerce website, Bluefly Inc, has grown rapidly since it’s inception. , 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 Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the retailer of designer fashions at 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. prices (www.bluefly.com), announced today that its net revenue for the fourth quarter of 2000 grew nearly 87%, while its net loss narrowed for the first time. In the fourth quarter of 2000, Bluefly's net revenues increased to $5,761,000 from $3,082,000 in the fourth quarter of 1999. Bluefly's net loss for the fourth quarter of 2000 decreased to $5,360,000, or $1.13 per share, from $5,689,000, or $1.20 per share, in the fourth quarter of 1999. For the year, 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 over 242%, to $17,512,000 in 2000 from $5,109,000 in 1999. Net loss for the year increased to $21,109,000, or $4.45 per share, in 2000, from $13,194,000, or $2.83 per share, in 1999. Bluefly's total customer base grew by 236% in 2000 to over 185,000 from under 55,000 in 1999. Gross margin in the fourth quarter of 2000 increased nearly 269%, to 24.7% from 6.7% in the fourth quarter of 1999, as reclassified pursuant to recent accounting pronouncements. Gross margin for the year nearly doubled to 20% in 2000 from 10.9% in 1999. If net sales and costs of sales were presented on a basis consistent with historical practices prior to the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. , gross margin for the fourth quarter of 2000 would increase to 27.9% from 24% for the fourth quarter of 1999. On such basis, gross margin for the year would increase to 24.3% in 2000 from 23.9% for the prior year. "The new records Bluefly set this quarter are meaningful because they are all based on metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. that help determine our profitability," said Ken Seiff, Chief Executive Officer of Bluefly, Inc. "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 December: see month. . The fact that we narrowed our quarterly loss for the first time suggests to me that we have turned a corner," Seiff added. The $0.07 per share reduction in net loss that Bluefly achieved in the fourth quarter of 2000 was the result of continuing improvement in several key metrics: - 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. About Bluefly, Inc. Bluefly is headquartered 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. Distinguishing itself with discounts of up to 75%, products from over 300 designers and a 90-day money back guarantee, Bluefly.com aims to be the world's first full service outlet store for designer fashions. Its innovative MyCatalog feature is designed to eliminate the "hit-or-miss hit-or-miss adj. Marked by a lack of care, accuracy, or organization; random. hit or miss adv. " aspect of off-price off-price adj. 1. Of, relating to, or being a retail store that sells merchandise at prices lower than usual. 2. For sale at prices lower than usual: off-price assortments of women's clothing. shopping by allowing shoppers to see only those products that are available for sale and match their interests. The online merchant has established strategic alliances with many of the most visited Web Sites and portals including AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. , MSN (1) (MicroSoft Network) A family of Internet-based services from Microsoft, which includes a search engine, e-mail (Hotmail), instant messaging (Windows Live Messaging) and a general-purpose portal with news, information and shopping (MSN Directory). , and Yahoo! For more information, visit www.bluefly.com.
Bluefly, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
Three Months Ended Year Ended
December December December December
31, 31, 31, 31,
2000 1999 2000 1999
Net sales(a) $5,761,000 $3,082,000 $17,512,000 $5,109,000
Cost of sales(a) $4,338,000 2,875,000 14,018,000 4,554,000
Gross profit (loss)(a) 1,423,000 207,000 3,494,000 555,000
Gross profit percentage(a) 24.7% 6.7% 20.0% 10.9%
Selling, marketing
and fulfillment
expenses 4,884,000 4,633,000 18,797,000 10,794,000
General and
administrative expenses 1,560,000 1,412,000 5,296,000 3,450,000
Operating loss from
continuing operations(5,021,000)(5,838,000)(20,599,000)(13,689,000)
Interest (expense)
and other income (339,000) 147,000 (510,000) 430,000
Income tax benefit -- 2,000 -- 2,000
Loss from
continuing operations (5,360,000)(5,689,000)(21,109,000)(13,257,000)
Income from
discontinued operations -- -- -- 63,000
Net loss (5,360,000)(5,689,000)(21,109,000)(13,194,000)
Basic and diluted net
(loss) income per share
(after preferred
stock dividends)
Continuing operations (1.13) (1.20) (4.45) (2.83)
Discontinued operations -- -- -- .01
--------- --------- -------- ---------
Net loss per share $ (1.13) $ (1.20) $ (4.45) $ (2.82)
Weighted average
shares outstanding 4,924,906 4,918,749 4,924,906 4,802,249
(a) In accordance with EITF 00-10, shipping and handling charges
collected from customers have been included in net sales. In
connection with that change, the Company has elected to include
outbound shipping costs as part of cost of sales. Prior to the
fourth quarter of 2000, outbound shipping costs net of shipping
and handling revenue had been presented as part of selling,
marketing and fulfillment expenses. All periods presented have
been reclassified for consistent presentation.
SELECTED BALANCE SHEET DATA & KEY METRICS
December 31, 2000 December 31, 1999
Cash $5,350,000 $7,934,000
Inventories, net 7,294,000 7,020,000
Other Current Assets 1,704,000 1,080,000
Property & Equipment, net 1,326,000 1,037,000
Total Current Liabilities 6,131,000 6,523,000
Notes Payable, net 19,698,000 --
Redeemable Preferred Stock
and Shareholders' (Deficit) Equity (9,961,000) 10,586,000
Three Months Year Ended
Ended
December December December December
31, 31, 31, 31,
2000 1999 2000 1999
Average Monthly
Unique Visitors(b) 542,667 507,667 427,166 336,417
Gross Revenue Per
Average Monthly
Unique Visitor(b) $5.03 $2.76 $4.59 $1.70
Average Order Size $121.81 $93.48 $105.06 $94.60
Average Order Per
New Customer $107.20 $88.03 $92.68 $85.81
Average Order per
Repeat Customer(c) $140.60 $105.79 $122.88 $116.05
Registered Users 863,263 336,000 863,263 336,000
Registered Users
Added During Period 116,537 145,645 527,263 309,952
Total Customers 185,240 54,881 185,240 54,881
Customers Added
During Period 37,169 31,156 130,359 51,514
Revenue from Repeat
Customers as %
of Total Revenue 50% 35% 48% 36%
Customer
Acquisition Cost (d) $49.53 $95.10 $71.18 $131.75
(b) Based on Media Metrix data.
(c) Repeat customer is defined as a person who has bought more than
once from Bluefly during their lifetime.
(d) Customer Acquisition Cost is calculated by dividing total
advertising expenditures (excluding staff related costs) by total
new customers added. New customer number is based on unique email
addresses.
This press release may include statements that constitute "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " 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-KSB. These risks and uncertainties include, but are not limited to, the following: the Company's limited working capital, need for additional capital and potential inability to raise such capital; the competitive nature of the business and the potential for competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. with greater resources to enter such business; recent difficulties in the retail apparel market; risks of 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. for sale of unauthentic or damaged goods DAMAGED GOODS. In the language of the customs, are goods subject to duties, which have received some injury either in the voyage home, or while bonded in warehouses. See Abatement, merc. law. and litigation risks related to sales in foreign countries; consumer acceptance of the Internet as a medium for purchasing apparel; recent losses and anticipated future losses; risks that the Company will be unable to reduce the levels of losses; potential adverse effects on gross margin resulting from mark downs and allowances; the capital intensive nature of such business (taking into account the need for advertising to promote such business); the dependence on third parties and certain relationships for certain services, including uncertainty arising from a lack of operating history with the company's new 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. center; the successful hiring and retaining of personnel; the dependence on continued growth of online commerce; rapid technological change; online commerce security risks; the startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. nature of the Internet business; governmental regulation and legal uncertainties; management of potential growth; and unexpected changes in fashion trends. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion