Online retailer Bluefly Inc. reported a first-quarter 2009 net loss of just under $3 million, only slightly deeper than the $2.9 million+ loss it reported during first quarter 2008. The company’s net sales dropped substantially, however, from $25.2 million a year ago to $19.9 million for the quarter which ended March 31 of this year.
According to the company, the drop in net sales resulted from an 18% decline in new customers added during the year (58,855 in first-quarter 2008; 46,605 in first-quarter 2009) and a decline in average order size, from $273.65 to $249.99.
During the most recent quarter, the company’s cost of sales rose to $13.1 million, or 66% of its net sales, compared with $16.3 million, or 64.6% of its sales during first-quarter 2008. Selling and fulfillment expenses amounted to 22% ($4.4 million) of its sales, compared with 20.1% ($5.1 million) a year earlier.
While the company trimmed its marketing expenses from just under $3.5 million to slightly more than $3 million, as a percentage of sales marketing grew from 14% to 15.2%. The $367,000 drop was due to a reduction in online marketing expenditures. The company’s print and television ad budget remained at around $1.4 million for both quarters.
Bluefly sells discounted apparel, accessories and home products through its Web site.
