Retailer Bluefly says it is "encouraged" after a first-quarter revenue hike led to its net loss edging down to US$2.9m from $3.1m in the same period last year.

Revenues at the US company were up 14% to $25.2m, while gross profit increased 7% to $8.9m.

The company's operating loss also edged down from $3.2m to $2.9m.

"I am encouraged by the first quarter results, given the softness of the overall retail environment," said Melissa Payner, Bluefly CEO. "Although we made the decision to be somewhat promotional in the early part of the first quarter, we were encouraged by the growth we saw in the margin once we launched our spring collection."