Online retailer Bluefly Inc has recorded a 69 per cent increase in third quarter gross profit, helped by its new merchandise strategy of offering the latest fashion trends and designer brands.

Sales were up 6 per cent to $8.68 million for the third quarter, from $8.21m in the year-before period.

Gross margins rose to 34.2 per cent, from 21.3 per cent in the third quarter of 2003. 

Net loss dropped by over 22 per cent to $1.96m from $2.52m in 2003.