A First: Bluefly Makes Money
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. – George
Anderson – Moderator