A First: Bluefly Makes Money

Feb 19, 2004

By George Anderson

Bluefly, the e-tailer of designer apparel and accessories at discount prices, has recorded its first-ever quarterly profit.

Bluefly’s chief executive, Ken Seiff, told the Wall Street Journal the retailer was able to turn a profit by concentrating on improved buying and replenishment of key
product categories such as cashmere and shoes. The e-tailer also eliminated some coupon programs to help boost profit margins.

The e-tailer posted a profit of $111,000 on sales of $13.9 million during the fourth quarter. Sales were up 42 percent against the same period a year earlier. Bluefly lost $6.37
million for the year.

Moderator’s Comment: Will Bluefly follow Amazon and prove it’s possible to be profitable
as a pure-play e-tailer?

Technically, Bluefly can no longer be considered a pure-play. It opened a temporary outlet store on West 24th in Manhattan before the holidays. We’ve heard
the shop has a sale going on that has everything (Prada, Gucci, Fendi, etc.) priced for $25 or less.
Anderson – Moderator

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