They are encouraged by what they believe to be the preliminary positive effects of the national advertising campaign they began in fiscal 2005.
Their results reflect approximately $3.2 million of spending on the campaign, primarily in the third and fourth quarters.
They will continue to invest in this campaign in fiscal 2006 and are planning for solid increases in their top-line results, while maintaining margin levels comparable to those achieved in 2005."
Other financial results for the fourth quarter and the full year were as follows (all comparisons are to the fourth quarter of 2004 or the year 2004, as applicable):
-- Net loss for the fourth quarter was $55,000, compared with net income of $7,000 in the fourth quarter of 2004.
Net loss per share (which includes preferred stock dividends) was $0.07 per share in the fourth quarter of both 2005 and 2004.(1)
-- Net loss for the year increased to $3.82 million from $3.79 million for 2004.
Net loss per share decreased to $0.54 in 2005 from $0.55 in 2004.(2)
-- New customers acquired during the fourth quarter increased nearly 27 percent to 53,887 from 42,572.
New customers acquired during the year increased 17 percent to 148,975 from 127,177.
-- Marketing expenditures for the fourth quarter increased to $3.3 million from approximately $601,000.
Marketing expenditures for the year increased to nearly $6.3 million from nearly $1.5 million.
-- Gross average order size for the year increased by 17.5 percent to $220.17 from $187.32.
Founded in 1998, Bluefly Inc is a leading online retailer of designer brands, fashion trends and superior value.
Bluefly is headquartered at 42 West 39th Street in New York City, in the heart of the Fashion District.
marketing@alchempro.com
