Market Expansion Led To Loss Of Bluefly Brand In The Fourth Quarter Of Last Year

AOL fashion retailers Bluefly company Because of the high inventory and the high expectations of sales, the Belle&Clive spike website was launched. The spike website brought high cost to the company, resulting in its fourth quarter loss.

Joseph Parker, chief executive of Bluefly network, said: "fiscal year 2011 is a key year for our company. We have introduced several key measures for the future growth of the company."

He further revealed: "in order to achieve the goal of future growth, we launched the Eyefly network in June last year to increase the product types of our company, and then we launched the Belle&Clive. These initiatives have enabled the Bluefly network to attract 20 million non repeated users, and we and more than 350. Fashion brand The partnership allows us to buy consumers' favorite brands at a member's price within a limited time. "

The net loss of Bluefly has increased from $4 million to $11 million in December 31st, with a lower gross margin and an increase in the marketing cost of 6% to offset the profits from higher sales.

Benefit from the consumer Top designer Brand's continued demand for purchases, Bluefly net sales increased by 9% to $96 million 300 thousand. However, with higher inventories, the decrease in credit lines (reduced by US $1 million) and the increase in costs caused by promotional activities have led to a decline in gross margin of Bluefly net from 37.5% to 29.4%.