For the quarter ended Sept. 30, the designer brand website posted a new loss of
of $6.3 million, or 22 cents a share, compared to net loss of $2.5 million, or 10 cents a share a year ago.
Total net revenue rose 3% to $21.7 million from $21.2 million last year primarily as a result of a reduction in return rates, which were partially offset by a decrease in average order size, and a decrease in shipping and handling revenue related to increased promotional activity.
Gross profit margin decreased to 13.6% from 29.1% last year. “While our gross profit margin decreased during the quarter, our inventory turns have improved by more than 80%,” noted Joseph Park, ceo.
“Furthermore, healthy increases in free traffic, the continued growth in our overall member file, and the cross over between Bluefly and Belle & Clive member files position us well to leverage these drivers, which we believe will enable us to improve operating performance going forward,” Park added.
Earlier this month, the company secured a new $10 million senior working capital credit facility with Salus Capital Partners LLC, which replaces replaces its $7.5 million credit facility with Wells Fargo Retail Finance, LLC.
“We believe that Salus is a great complement to the company’s new strategy and we look forward to a mutually beneficial working relationship for many years to come. Salus is well-positioned to assist us in our future plans.” said Park.