Monday, May 14, 2012

Bluefly 1Q loss widens on CEO pay, promotions




NEW YORK (AP) — Online clothing and accessories retailer Bluefly Inc. said Monday that its loss widened in the first three months of the year on increased discounting and a payout for its outgoing CEO.

The company posted a loss of $7.9 million, or 28 cents per share, compared with a year-ago loss of $1.3 million, or 5 cents per share.

Revenue rose 12 percent to $24.3 million from $21.7 million a year ago.

Operating expenses rose 23 percent to $11.6 million in the quarter. That included $1.3 million in "separation costs" for former CEO Melissa Payner, who resigned in February and was replaced by Joseph Park, then the company's chief operating officer.

The company's gross margin — how much revenue it keeps as profit after costs — fell to 15.4 percent from 37.8 percent a year earlier. Bluefly, which is based in New York, said it expects its inventory strategy and discounting to continue to hurt its margins.



Source & Image : Yahoo

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