Essentially, revenue is growing for the company but they are still operating at a loss because they haven’t been able to meet inventory demands and do not take backorders for inventory. Delays created losses to gross margins due to the inability to meet sales demands.
Marketing and Advertising expenses included a “shift in speding to support our partnership with Project Runway”.
New unique visitors increased 30% weekly over the course of Project Runways 16 episodes. 89% of visitors watching Project Runway also visited the website after the broadcast of each episode.
Margins were smaller due to the devaluation of the dollar versus the Euro which directly impacted revenues.
The good news is they have no debt on their balance sheets and have $3 million on line with Wells Fargo (WFC).
The board of directors has approved a 1 for 10 reverse stock split to occur April 3rd. This is to be in compliance with continued listing requirements by NASDAQ. 2008 spending will be focused mainly for online spending at 56% online and 44% offline, lowering overall cost. Guidance was overall positive though no solid figures were given.
I own shares of Bluefly and Wells Fargo
