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Bluefly buzzes Wall St.
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December 1, 1998: 10:56 a.m. ET
Co-branding deal with Yahoo! Shopping sends online outlet's shares soaring 40%
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NEW YORK (CNNfn) - Shares of Bluefly, an online fashion outlet based in New York City, strut their stuff on the Wall Street catwalk Tuesday after surging more than 40 percent on news the company had launched a version of its store on Yahoo! Shopping.
Under the terms of a co-branding agreement, Bluefly will integrate its virtual store into Yahoo! Shopping, a one-stop internet shopping site created on Nov. 17 as the latest addition to Yahoo!'s global Internet media portfolio.
Bluefly, a small-cap company that trades on the Nasdaq under the ticker symbol (BFLY), saw its stock surge 6 points to 20-13/16, a 40.51 percent rise. Yahoo stock (YHOO) was off 5 points at 187 on the Nasdaq in early trading Tuesday.
In a statement Tuesday, Bluefly said the venture with Yahoo! would offer consumers "an even more extensive selection of name-brand apparel available on Yahoo! Shopping and expand Bluefly's presence on the Internet."
Bluefly sells apparel and accessories via the Web at discounts of up to 75 percent. Among the designers featured in Bluefly's fashion line are top-of-the-line names such as Polo by Ralph Lauren, Chanel, and Tommy Hilfiger. The company's "MyCatalog" feature enables customers to create a personalized catalog of fashion picks.
In a recent interview with CNNfn, Yahoo!'s founder, Jerry Yang talked about the challenges that lie ahead as Yahoo! tries to engage a mushrooming market of Web users, now estimated at about 100 million, of which 70 percent is in the United States.
Internet sales still account for substantially less than 1 percent of the nation's $3.5 trillion retail market, however, though e-commerce merchants are reporting new milestones almost monthly. Analysts tracking the industry say they expect Internet sales to double in 1998, to around $2.3 billion, from year-ago levels.
"…The hopes on e-commerce and communications going forward is what we're trying to capitalize on," Yang said.
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