FOR
IMMEDIATE RELEASE
|
Investor
Contacts:
|
Press
Contact:
|
Kara
B. Jenny
|
Monica
Halpert
|
|
Chief
Financial Officer
|
Director
of Content and Creative
|
|
Bluefly,
Inc.
|
212-944-8000
ext. 297
|
|
212-
944-8000 ext. 286
|
monica.halpert@bluefly.com
|
|
kara.jenny@bluefly.com
|
|
·
|
Net
revenue increased by approximately 4% to $20.5 million from $19.9 million
in the second quarter of 2009.
|
|
·
|
Gross
margin percentage decreased to 38.8% from 39.7% in the second quarter of
2009 as a result of a decrease in product margins related to the growth of
luxury designer merchandise, which historically have lower margins
compared to contemporary
merchandise.
|
|
·
|
Operating
expenses increased by approximately 12% to $8.6 million from $7.7 million
in the second quarter of 2009 as a result of a planned increase in online
and offline marketing expenses of $1.1 million vs. the same period in the
prior year. This increase represents a return to awareness
building marketing activities, which were severely reduced during the
second quarter of 2009 in response to the difficult economic
environment. We believe that as the year progresses, we will
leverage this investment to deliver improved marketing spend to sales
ratios. This increase was also offset by a decrease of $105,000
in selling and fulfillment expenses and a decrease in general and
administrative expenses of $63,000.
|
|
·
|
Operating
loss of approximately $669,000 as compared to operating income of $161,000
in the second quarter of 2009.
|
|
·
|
Adjusted
EBITDA decreased to positive $143,000 from a positive adjusted EBITDA of
$1.1 million in the second quarter of
2009.
|
|
·
|
Average
order size increased to a record high of $310.39 in the second quarter of
2010 compared to $268.79 in the second quarter of
2009.
|
|
·
|
Cash
and cash equivalents increased to $11.6 million at June 30, 2010 compared
to $10.0 million at December 31,
2009.
|
|
·
|
Inventory
increased to $23.4 million at June 30, 2010 compared to $17.7 million at
December 31, 2009 of which over $3 million of our inventory held at June
30, 2010 represents merchandise expected to be sold during our fall launch
later this year.
|
Three Months Ended
|
||||||||
June 30,
|
||||||||
2010
|
2009
|
|||||||
Net
sales
|
$ | 20,545,000 | $ | 19,858,000 | ||||
Cost
of sales
|
12,567,000 | 11,974,000 | ||||||
Gross
profit
|
7,978,000 | 7,884,000 | ||||||
Gross
margin
|
38.8 | % | 39.7 | % | ||||
Selling
and fulfillment expenses
|
3,926,000 | 4,031,000 | ||||||
Marketing
expenses
|
2,855,000 | 1,763,000 | ||||||
General
and administrative expenses
|
1,866,000 | 1,929,000 | ||||||
Total
operating expenses
|
8,647,000 | 7,723,000 | ||||||
Operating
(loss) income
|
(669,000 | ) | 161,000 | |||||
Interest
expense to related party stockholders
|
— | (275,000 | ) | |||||
Other
interest expense, net
|
(55,000 | ) | (72,000 | ) | ||||
Net
loss
|
$ | (724,000 | ) | $ | (186,000 | ) | ||
Basic
and diluted net loss per common share
|
$ | (0.03 | ) | $ | (0.01 | ) | ||
Weighted
average common shares outstanding
|
||||||||
(basic and diluted)
|
24,597,254 | 13,843,985 |
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Cash
and cash equivalents
|
$ | 11,576,000 | $ | 10,049,000 | ||||
Inventories,
net
|
23,417,000 | 17,668,000 | ||||||
Prepaid
expenses and other current assets
|
3,971,000 | 4,278,000 | ||||||
Property
and equipment, net
|
3,128,000 | 3,506,000 | ||||||
Current
liabilities
|
11,133,000 | 12,611,000 | ||||||
Stockholders’
equity
|
31,098,000 | 23,035,000 | ||||||
Three
Months Ended
|
||||||||
June
30,
|
||||||||
2010
|
2009
|
|||||||
Average
order size (including shipping & handling)
|
$ | 310.39 | $ | 268.79 | ||||
New
customers added during the period
|
36,794 | 38,718 |
Three Months Ended
|
||||||||
June 30,
|
||||||||
2010
|
2009
|
|||||||
Net
loss
|
$ | (724,000 | ) | $ | (186,000 | ) | ||
Interest
income
|
(13,000 | ) | (5,000 | ) | ||||
Interest
expense to related party stockholders
|
— | 275,000 | ||||||
Interest
expense
|
68,000 | 77,000 | ||||||
Depreciation
and amortization expenses
|
611,000 | 792,000 | ||||||
Non-cash
share-based compensation expenses
|
201,000 | 151,000 | ||||||
Adjusted
EBITDA
|
$ | 143,000 | $ | 1,104,000 |