I've been on the fence about BFLY, but the Lands End '98 internet sales earnings growth has pushed me on over. A couple of select quotes from an article today in the Dallas Morning News.
"Clothes weren't supposed to fly on the Internet. But Lands' End's report of $61 million in online sales last year, up from $18 million in 1997, disproves that idea."
"Lands' End was one of the first apparel sellers to embrace the Internet, saying in 1995 that online sales were a logical leap since the majority of its customers owned a computer."
I've heard many people say clothes will never be an important e-category for the internet, but I'm beginning to believe it will be. Many people buy clothes from catalogs without trying them on, and with the advanced 3-D modeling technologies currently under development, the lack of ability to "try on" should become much less of an issue.
That said, I'm not wildly impressed with the site right now. I'm probably in their target market, (professional female, 37, status and fashion-concious, upper-middle income, buys merchandise on the internet frequently)and I just don't think they've got the right product mix yet. The clothes look flat and drab in the photos, I don't get a good feel for the color (could be a monitor problem on my end), and many of the items I clicked on and was interested in purchasing only had one size available (usually a size 4, which I am not and neither most women).
Anyway, I think these problems can be overcome, and I understand the company has a crack management team. I bought at $2 back in the very early days, sold at $4 thinking 100% return was as greedy as I should get, but you can't look back! I'm probably a buyer next week.
May your investments double, then triple, then double again....
O'Smitty (for St. Pat's) |
