Bluefly, Inc (NASDAQ SmallCap: BFLY), an online outlet for designer fashions and home furnishings (www.bluefly.com), announced today that it expects its fourth quarter revenue to be up approximately 90 per cent from the net sales of $3,042,000 it generated in the same period a year ago.

Bluefly also projected that, during the fourth quarter of 2000, its new customer acquisition cost will be at its best level ever, and it will set new records in terms of average order size, revenue generated in a quarter by repeat customers and the number of new customers acquired in a quarter.

Bluefly expects its average order size during the fourth quarter of 2000 to exceed the old record of $100.86, which was established in the third quarter of 2000, and to be up over 20 per cent from the $93.48 average order size it recorded in the fourth quarter of 1999. Gross margin per cent for the fourth quarter of 2000 is expected to exceed the 24 per cent recorded in the fourth quarter of 1999, and new customer acquisition cost for the fourth quarter of 2000 is expected to improve over the old record of $57.45, which was established in the third quarter of 2000. Bluefly projects that, during the fourth quarter of 2000, it will acquire more than 36,000 new customers and generate more than $2.7m in gross sales from repeat customers in a quarter, breaking its previous records for these metrics, which were both set in the second quarter of 2000.

"This fourth quarter  we expect to set new records for total sales, average order size, the number of new customers acquired, and revenue generated by repeat customers. While the sluggish retail environment may have prevented us from reaching the even stronger record sales that we had hoped for, we believe we have made significant strides and are proud of our results," said Ken Seiff, CEO of Bluefly, Inc.

Bluefly is a NASDAQ SmallCap public company based in New York City. It aims to be the world's first full service outlet store for designer fashions. Its innovative MyCatalog feature is designed to eliminate the "hit-or-miss" aspect of off-price shopping by allowing shoppers to see only those products that are available for sale and match their interests. For more information, visit http://www.bluefly.com