Internet retailer of designer fashions at outlet store prices, Bluefly Inc, on Tuesday revealed its operating loss narrowed to $1.4 million in the second quarter from $4.2m in the year-ago period. The New York-based company said that improvement was down to a 29 per cent jump in net sales to $6.8m, a 40 per cent surge in gross profit to $2.4m and a 42 per cent fall in selling, marketing and fulfilment expenses which fell to $2.6m.