Financial Reports: Staples, Victoria’s Secret, Bluefly

Big 4Q, Year for Staples
Fourth-quarter sales for Framingham, MA-based catalog/retailer Staples grew 18%, to $5.3 billion for the three months ended Feb. 3. Fourth-quarter sales from its North American Delivery Business, which includes the Staples and Quill catalog and online businesses as well as the Staples contract delivery business, rose 24%. North American retail sales increased 14%, and same-store sales rose 5%. Fourth-quarter net income climbed 24%, to $336 million.

For fiscal 2006, revenue rose 13%, to $18.2 billion. Sales for its North American Delivery Business increased 19%. North American retail sales jumped 10%. E-commerce sales rose 28%, to $4.9 billion. And net income increased 24%, to $974 million.

Victoria’s Secret Direct Sales Up for 4Q, Full Year
Fourth-quarter sales for Victoria’s Secret Direct, the catalog/Web division of Columbus, OH-based Limited Brands, increased 18%, to $492.0 million for the 14 weeks ended Feb. 3. Limited Brands’ total sales for the fourth quarter of fiscal 2006 were $4.02 billion, up 14% from $3.54 billion. Net income fell 15%, however, to $439.7 million from $519.2 million.

For the year, Limited Brands’ net income slipped 1%, to $675.7 million from $683.3 million. Net sales increased 10%, to $10.67 billion. For fiscal 2006, Victoria’s Secret Direct sales rose 15.5%, to $1.41 billion from $1.22 billion. In addition to the Victoria’s Secret catalogs, Website, and stores, Limited Brands owns retailers Express, Bath & Body Works, and Henri Bendel.

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 28%, to $27.1 million for the three months ended Dec. 31. During the same period, however, the company’s net loss reached $3.5 million, compared with a net loss of just $55,000 the previous fourth quarter.

For fiscal 2006, sales increased approximately 31%, to $77.1 million from $58.8 million. But the company’s net loss more than tripled, to $12.2 million from $3.8 million in fiscal 2005.

Nonetheless, Bluefly CEO Melissa Payner was upbeat in a statement: “We are pleased by the company’s record revenue for the year. Our strong growth in the face of slow cold-weather product sales throughout the industry is a testament to our continued progress and to the investment we have made in growing our customer file through our increased marketing efforts.”