Revenue Climbs at Bluefly—As Does Net Loss
Fourth-quarter sales at New York-based Bluefly, an online merchant of discounted designer apparel and decor, rose 10%, to $29.7 million for the three months ended Dec. 31. During the same period, however, the company’s net loss reached $5.6 million, compared with a net loss of $3.5 million the previous fourth quarter.
For fiscal 2007, sales increased approximately 19%, to $91.5 million from $77.1 million. But the company’s net loss more hit $15.8 million, after a net loss of $12.2 million in fiscal 2006.
Company officials announced that Bluefly entered into a one-year commitment with affiliates of Soros Fund Management and private funds associated with Maverick Capital, pursuant to which they agreed to provide up to $3 million of debt financing during the next year, provided that the commitment amount will be reduced by the gross proceeds of any equity financing consummated during the year.
Direct Sales Up At Williams-Sonoma
Fourth-quarter sales for San Francisco-based home products cataloger/retailer Williams-Sonoma (NYSE:WSM) increased 8%, to $1.08 billion for the three-month period ended Feb. 3. Net income rose 2.9%, to $124.5 million from $121.0 million. Direct-to-customer net sales increased 12.5%, to $527.8 million from $469.1 million last year. Retail sales increased 7.7%, to $846.6 million from $785.8 million. Internet sales jumped 29.1%, to $368.6 million from $285.5 million last year.
For fiscal 2007, Williams-Sonoma’s sales increased 5.8%, to $3.94 billion from $3.72 billion in fiscal 2006. Retail sales rose nearly 6%, to $2.28 billion, from $2.15 billion. Direct-to-customer net sales increased 5.7%, to $1.66 billion from $1.57 billion last year. Internet sales rose 19%, to $1.10 billion. Net income fell 6.2%, to $195.7 million from $208.8 million.