----

----

|   |   |                                                                                          |
|--------|--------|-----------------------------------------------------------------------------------------------|
| x      |   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|   |   | For the quarterly period ended March 31, 2011                                                 |
| OR     |   |                                                                                          |
|   |   |                                                                                          |
| o      |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|   |   | For the transition period from_________ to __________                                         |

|                                                                            |   |                                    |
|---------------------------------------------------------------------------------|--------|-----------------------------------------|
| Delaware                                                                        |   | 13-3612110                              |
| (State or other jurisdiction of incorporation or organization)                  |   | (I.R.S. Employer Identification Number) |
|                                                                            |   |                                    |
| 42 West 39th Street, New York, NY (Address of principal executive offices) |   | 10018 (Zip Code)                   |

| Large accelerated filer    o |   | Accelerated filer    o |   | Non-accelerated filer    o     |   | Smaller reporting company    x |
|---------------------------------------------|--------|---------------------------------------|--------|-----------------------------------------------|--------|-----------------------------------------------|
|                                        |   |                                  |   | (Do not check if a smaller reporting company) |   |                                          |

----

|            |   |                                                                                                      |   |  PAGE    |   |
|-----------------|--------|-----------------------------------------------------------------------------------------------------------|--------|---------------|--------|
| PART I –  |   | FINANCIAL INFORMATION                                                                                     |   |          |   |
|            |   |                                                                                                      |   |          |   |
| Item 1.    |   | Financial Statements:                                                                                     |   |          |   |
|            |   |                                                                                                      |   |          |   |
|            |   | Consolidated Balance Sheets as of March 31, 2011 (unaudited) and December 31, 2010                        |   | 3             |   |
|            |   |                                                                                                      |   |          |   |
|            |   | Consolidated Statements of Operations for the three months ended March 31, 2011 and 2010 (unaudited) |   | 4             |   |
|            |   |                                                                                                      |   |          |   |
|            |   | Consolidated Statements of Cash Flows for the three months ended March 31, 2011 and 2010 (unaudited)      |   | 5             |   |
|            |   |                                                                                                      |   |          |   |
|            |   | Notes to Consolidated Financial Statements (unaudited)                                                    |   | 6 – 9   |   |
|            |   |                                                                                                      |   |          |   |
| Item 2.    |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations               |   | 10 – 13 |   |
|            |   |                                                                                                      |   |          |   |
| Item 3.    |   | Quantitative and Qualitative Disclosures About Market Risk                                                |   | 13            |   |
|            |   |                                                                                                      |   |          |   |
| Item 4.    |   | Controls and Procedures                                                                                   |   | 14            |   |
|            |   |                                                                                                      |   |          |   |
| PART II – |   | OTHER INFORMATION                                                                                         |   |          |   |
|            |   |                                                                                                      |   |          |   |
| Item 6.    |   | Exhibits                                                                                                  |   | 15            |   |
|            |   |                                                                                                      |   |          |   |
| Signatures      |   | 16                                                                                                        |   |

----

|                                                                                                                                                                                                                                                                                                                                           |   | (Unaudited) |         |   |         |   |         |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------------|--------|--------------|--------|--------------|
|                                                                                                                                                                                                                                                                                                                                           |   | March 31,   |         |   | December 31, |   |
|                                                                                                                                                                                                                                                                                                                                           |   | 2011        |         |   | 2010         |   |
| Assets                                                                                                                                                                                                                                                                                                                                         |   |        |         |   |         |   |         |   |
| Current assets:                                                                                                                                                                                                                                                                                                                                |   |        |         |   |         |   |         |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                      |   | $           | 7,827,000    |   |         | $      | 10,429,000   |   |
| Accounts receivable — net of allowance for doubtful accounts                                                                                                                                                                                                                                                                             |   |        | 2,711,000    |   |         |   | 1,709,000    |   |
| Inventories, net                                                                                                                                                                                                                                                                                                                               |   |        | 27,139,000   |   |         |   | 25,128,000   |   |
| Prepaid inventory                                                                                                                                                                                                                                                                                                                              |   |        | 2,159,000    |   |         |   | 893,000      |   |
| Prepaid expenses                                                                                                                                                                                                                                                                                                                               |   |        | 154,000      |   |         |   | 199,000      |   |
| Other current assets                                                                                                                                                                                                                                                                                                                           |   |        | 460,000      |   |         |   | 503,000      |   |
| Total current assets                                                                                                                                                                                                                                                                                                                           |   |        | 40,450,000   |   |         |   | 38,861,000   |   |
|                                                                                                                                                                                                                                                                                                                                           |   |        |         |   |         |   |         |   |
| Property and equipment, net                                                                                                                                                                                                                                                                                                                    |   |        | 3,118,000    |   |         |   | 3,150,000    |   |
|                                                                                                                                                                                                                                                                                                                                           |   |        |         |   |         |   |         |   |
| Other assets                                                                                                                                                                                                                                                                                                                                   |   |        | 145,000      |   |         |   | 133,000      |   |
|                                                                                                                                                                                                                                                                                                                                           |   |        |         |   |         |   |         |   |
| Total assets                                                                                                                                                                                                                                                                                                                                   |   | $           | 43,713,000   |   |         | $      | 42,144,000   |   |
|                                                                                                                                                                                                                                                                                                                                           |   |        |         |   |         |   |         |   |
| Liabilities and Stockholders’ Equity                                                                                                                                                                                                                                                                                                     |   |        |         |   |         |   |         |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                           |   |        |         |   |         |   |         |   |
| Accounts payable                                                                                                                                                                                                                                                                                                                               |   | $           | 6,243,000    |   |         | $      | 4,515,000    |   |
| Allowance for sales returns                                                                                                                                                                                                                                                                                                                    |   |        | 3,564,000    |   |         |   | 3,142,000    |   |
| Accrued expenses and other current liabilities                                                                                                                                                                                                                                                                                                 |   |        | 1,470,000    |   |         |   | 1,118,000    |   |
| Deferred revenue                                                                                                                                                                                                                                                                                                                               |   |        | 3,392,000    |   |         |   | 3,545,000    |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                                      |   |        | 14,669,000   |   |         |   | 12,320,000   |   |
|                                                                                                                                                                                                                                                                                                                                           |   |        |         |   |         |   |         |   |
| Deferred rent                                                                                                                                                                                                                                                                                                                                  |   |        | 200,000      |   |         |   | 183,000      |   |
|                                                                                                                                                                                                                                                                                                                                           |   |        |         |   |         |   |         |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                              |   |        | 14,869,000   |   |         |   | 12,503,000   |   |
|                                                                                                                                                                                                                                                                                                                                           |   |        |         |   |         |   |         |   |
| Commitments and contingencies                                                                                                                                                                                                                                                                                                                  |   |        |         |   |         |   |         |   |
|                                                                                                                                                                                                                                                                                                                                           |   |        |         |   |         |   |         |   |
| Stockholders’ equity:                                                                                                                                                                                                                                                                                                                    |   |        |         |   |         |   |         |   |
| Bluefly, Inc. stockholders’ equity:                                                                                                                                                                                                                                                                                                      |   |        |         |   |         |   |         |   |
| Common stock – $.01 par value;  50,000,000 shares authorized as of March 31, 2011 and December 31, 2010, respectively; 24,948,090 and 24,944,986 shares issued as of March 31, 2011 and December 31, 2010, respectively, 24,609,692 and 24,606,588 shares outstanding as of March 31, 2011 and December 31, 2010, respectively |   |        | 246,000      |   |         |   | 246,000      |   |
| Treasury stock                                                                                                                                                                                                                                                                                                                                 |   |        | (1,824,000   | )      |         |   | (1,824,000   | ) |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                                     |   |        | 182,937,000  |   |         |   | 182,720,000  |   |
| Accumulated deficit                                                                                                                                                                                                                                                                                                                            |   |        | (152,779,000 | )      |         |   | (151,501,000 | ) |
| Total Bluefly, Inc. stockholders’ equity                                                                                                                                                                                                                                                                                                 |   |        | 28,580,000   |   |         |   | 29,641,000   |   |
| Noncontrolling interest in subsidiary                                                                                                                                                                                                                                                                                                          |   |        | 264,000      |   |         |   | —      |   |
| Total stockholders’ equity                                                                                                                                                                                                                                                                                                               |   |        | 28,844,000   |   |         |   | 29,641,000   |   |
| Total liabilities and stockholders’ equity                                                                                                                                                                                                                                                                                               |   | $           | 43,713,000   |   |         | $      | 42,144,000   |   |

----

|                                                                 |   | Three Months Ended |
|----------------------------------------------------------------------|--------|--------------------|
|                                                                 |   | March 31,          |
|                                                                 |   | 2011               |   |   | 2010 |   |
|                                                                 |   |               |   |   |   |   |   |   |
| Net sales                                                            |   | $                  | 21,693,000 |   |   | $ | 20,240,000 |   |
| Cost of sales                                                        |   |               | 13,498,000 |   |   |   | 11,903,000 |   |
| Gross profit                                                         |   |               | 8,195,000 |   |   |   | 8,337,000 |   |
|                                                                 |   |               |   |   |   |   |   |   |
| Selling and fulfillment expenses                                     |   |               | 4,337,000 |   |   |   | 4,049,000 |   |
| Marketing expenses                                                   |   |               | 3,000,000 |   |   |   | 3,652,000 |   |
| General and administrative expenses                                  |   |               | 2,112,000 |   |   |   | 2,091,000 |   |
| Total operating expenses                                             |   |               | 9,449,000 |   |   |   | 9,792,000 |   |
|                                                                 |   |               |   |   |   |   |   |   |
| Operating loss                                                       |   |               | (1,254,000 | ) |   |   | (1,455,000 | ) |
|                                                                 |   |               |   |   |   |   |   |   |
| Other interest expense, net                                          |   |               | (96,000 | ) |   |   | (46,000 | ) |
|                                                                 |   |               |   |   |   |   |   |   |
| Net loss                                                             |   |               | (1,350,000 | ) |   |   | (1,501,000 | ) |
|                                                                 |   |               |   |   |   |   |   |   |
| Less: net loss attributable to noncontrolling interest in subsidiary |   |               | (72,000 | ) |   |   | — |   |
|                                                                 |   |               |   |   |   |   |   |   |
| Net loss attributable to Bluefly, Inc. stockholders                  |   | $                  | (1,278,000 | ) |   | $ | (1,501,000 | ) |
|                                                                 |   |               |   |   |   |   |   |   |
| Basic and diluted net loss per common share                          |   |               |   |   |   |   |   |   |
| attributable to Bluefly, Inc. stockholders                           |   | $                  | (0.05 | ) |   | $ | (0.07 | ) |
|                                                                 |   |               |   |   |   |   |   |   |
| Weighted average common shares outstanding                           |   |               |   |   |   |   |   |   |
| (basic and diluted)                                                  |   |               | 24,605,199 |   |   |   | 20,896,437 |   |

----

|                                                                              |   | Three Months Ended |
|-----------------------------------------------------------------------------------|--------|--------------------|
|                                                                              |   | March 31,          |
|                                                                              |   | 2011               |   | 2010 |
| Cash flows from operating activities:                                             |   |               |   |   |   |   |   |   |
| Net loss                                                                          |   | $                  | (1,350,000 | ) |   | $ | (1,501,000 | ) |
|  Adjustments to reconcile net loss to net cash used in operating activities: |   |               |   |   |   |   |   |   |
| Depreciation and amortization                                                     |   |               | 676,000 |   |   |   | 658,000 |   |
| Stock-based compensation expense                                                  |   |               | 211,000 |   |   |   | 83,000 |   |
| Provisions for returns                                                            |   |               | 423,000 |   |   |   | 603,000 |   |
| Bad debt expense                                                                  |   |               | 109,000 |   |   |   | 97,000 |   |
| Reserve for inventory obsolescence                                                |   |               | (50,000 | ) |   |   | 88,000 |   |
| Deferred rent                                                                     |   |               | 17,000 |   |   |   | — |   |
| Change in operating assets and liabilities:                                       |   |               |   |   |   |   |   |   |
| (Increase) decrease in:                                                           |   |               |   |   |   |   |   |   |
| Accounts receivable                                                               |   |               | (1,111,000 | ) |   |   | (623,000 | ) |
| Inventories                                                                       |   |               | (1,961,000 | ) |   |   | (2,393,000 | ) |
| Prepaid inventory                                                                 |   |               | (1,266,000 | ) |   |   | (1,708,000 | ) |
| Prepaid expenses                                                                  |   |               | 45,000 |   |   |   | (572,000 | ) |
| Other assets                                                                      |   |               | 28,000 |   |   |   | (6,000 | ) |
| Increase (decrease) in:                                                           |   |               |   |   |   |   |   |   |
| Accounts payable                                                                  |   |               | 1,728,000 |   |   |   | 787,000 |   |
| Accrued expenses and other current liabilities                                    |   |               | 351,000 |   |   |   | (300,000 | ) |
| Deferred revenue                                                                  |   |               | (153,000 | ) |   |   | (614,000 | ) |
|                                                                              |   |               |   |   |   |   |   |   |
| Net cash used in operating activities                                             |   |               | (2,303,000 | ) |   |   | (5,401,000 | ) |
|                                                                              |   |               |   |   |   |   |   |   |
| Cash flows from investing activities:                                             |   |               |   |   |   |   |   |   |
| Purchases of property and equipment                                               |   |               | (641,000 | ) |   |   | (405,000 | ) |
|                                                                              |   |               |   |   |   |   |   |   |
| Net cash used in investing activities                                             |   |               | (641,000 | ) |   |   | (405,000 | ) |
|                                                                              |   |               |   |   |   |   |   |   |
| Cash flows from financing activities:                                             |   |               |   |   |   |   |   |   |
| Net proceeds from common stock issuance                                           |   |               | — |   |   |   | 10,020,000 |   |
| Proceeds from exercise of stock options                                           |   |               | 6,000 |   |   |   | — |   |
| Purchase of treasury stock                                                        |   |               | — |   |   |   | (11,000 | ) |
| Proceeds from capital contribution for the purchase of                            |   |               |   |   |   |   |   |   |
| noncontrolling interest in subsidiary by third-party                              |   |               | 336,000 |   |   |   | — |   |
|                                                                              |   |               |   |   |   |   |   |   |
| Net cash provided by financing activities                                         |   |               | 342,000 |   |   |   | 10,009,000 |   |
|                                                                              |   |               |   |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                              |   |               | (2,602,000 | ) |   |   | 4,203,000 |   |
| Cash and cash equivalents – beginning of period                             |   |               | 10,429,000 |   |   |   | 10,049,000 |   |
| Cash and cash equivalents – end of period                                   |   | $                  | 7,827,000 |   |   | $ | 14,252,000 |   |
|                                                                              |   |               |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                 |   |               |   |   |   |   |   |   |
| Cash paid for interest expense                                                    |   | $                  | 74,000 |   |   | $ | 60,000 |   |

----

----

|                                                             |   | Total               |       |           |   |                |
|------------------------------------------------------------------|--------|---------------------|------------|----------------|--------|---------------------|
|                                                             |   | Bluefly, Inc.       |       | Noncontrolling |   | Total               |
|                                                             |   | Stockholders’ |       | Interest In    |   | Stockholders’ |
|                                                             |   | Equity              |       | Subsidiary     |   | Equity              |
|                                                             |   |                |       |           |   |                |   |   |   |   |   |   |
| Balance at December 31, 2010                                     |   | $                   | 29,641,000 |           |   | $                   | — |   |   | $ | 29,641,000 |   |
|                                                             |   |                |       |           |   |                |   |   |   |   |   |   |
| Stock-based compensation expense                                 |   |                | 211,000    |           |   |                | — |   |   |   | 211,000 |   |
|                                                             |   |                |       |           |   |                |   |   |   |   |   |   |
| Exercise of stock options                                        |   |                | 6,000      |           |   |                | — |   |   |   | 6,000 |   |
|                                                             |   |                |       |           |   |                |   |   |   |   |   |   |
| Purchase of noncontrolling interest in subsidiary by third-party |   |                | —    |           |   |                | 336,000 |   |   |   | 336,000 |   |
|                                                             |   |                |       |           |   |                |   |   |   |   |   |   |
| Net loss                                                         |   |                | (1,278,000 | )              |   |                | (72,000 | ) |   |   | (1,350,000 | ) |
|                                                             |   |                |       |           |   |                |   |   |   |   |   |   |
| Balance at March 31, 2011                                        |   | $                   | 28,580,000 |           |   | $                   | 264,000 |   |   | $ | 28,844,000 |   |

----

|                         |   |      |      |   | Weighted Average |   |
|------------------------------|--------|-----------|-----------|--------|------------------|--------|
|                         |   | Number of |      |   | Exercise Price   |   |
|                         |   | Shares    |      |   | Per Share        |   |
| Balance at December 31, 2010 |   |      | 2,091,108 |   |             | $      | 3.05 |   |
| Options granted              |   |      | —   |   |             | $      | — |   |
| Options cancelled            |   |      | (29,490   | )      |             | $      | 4.27 |   |
| Options expired              |   |      | (375      | )      |             | $      | 21.60 |   |
| Options exercised            |   |      | (3,104    | )      |             | $      | 2.25 |   |
| Balance at March 31, 2011    |   |      | 2,058,139 |   |             | $      | 3.03 |   |
|                         |   |      |      |   |             |   |   |   |
| Vested at December 31, 2010  |   |      | 520,908   |   |             | $      | 5.00 |   |
|                         |   |      |      |   |             |   |   |   |
| Vested at March 31, 2011     |   |      | 643,192   |   |             | $      | 4.42 |   |

|                                                      |   | Restricted   |    |
|-----------------------------------------------------------|--------|--------------|---------|
|                                                      |   | Stock Awards |    |
| Balance at December 31, 2010                              |   |         | 7,312   |   |
| Shares/Units granted                                      |   |         | — |   |
| Shares/Units forfeited                                    |   |         | — |   |
| Shares/Units restriction lapses                           |   |         | (7,312  | ) |
| Balance at March 31, 2011                                 |   |         | — |   |
|                                                      |   |         |    |   |
| Weighted average grant date fair value per share          |   | $            | — |   |
|                                                      |   |         |    |   |
| Aggregate grant date fair value                           |   | $            | — |   |
|                                                      |   |         |    |   |
| Weighted average vesting service period of shares granted |   | 12 Months    |    |
|                                                      |   |         |    |   |
| Number of shares/units vested at March 31, 2011           |   |         | — |   |
|                                                      |   |         |    |   |
| Number of shares/units Non-vested at March 31, 2011       |   |         | — |   |

----

|                                                 |   | Three Months Ended |
|------------------------------------------------------|--------|--------------------|
|                                                 |   | March 31,          |
|                                                 |   | 2011               |   | 2010 |
|                                                 |   |               |   |   |   |   |   |   |
| Net loss attributable to Bluefly, Inc. stockholders  |   | $                  | (1,278,000 | ) |   | $ | (1,501,000 | ) |
|                                                 |   |               |   |   |   |   |   |   |
| Weighted average common shares outstanding (basic)   |   |               | 24,605,199 |   |   |   | 20,896,437 |   |
|                                                 |   |               |   |   |   |   |   |   |
| Options and warrants(1)(2)                           |   |               | — |   |   |   | — |   |
|                                                 |   |               |   |   |   |   |   |   |
| Restricted stock and deferred stock awards(1)        |   |               | — |   |   |   | — |   |
|                                                 |   |               |   |   |   |   |   |   |
| Weighted average common shares outstanding (diluted) |   |               | 24,605,199 |   |   |   | 20,896,437 |   |

|   |   |                                                                                                                                                                                                                                                                                      |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (1)    | For the three months ended March 31, 2011 and 2010, the Company had weighted average shares of the following potentially dilutive securities that were excluded:                                                                                                                          |   |   |   |   |   |   |   |   |
|   |   |                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|   |   | Options and warrants                                                                                                                                                                                                                                                                      |   |   | 435,637 |   |   |   | 168,336 |   |
|   |   |                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|   |   | Restricted stock and deferred stock awards                                                                                                                                                                                                                                                |   |   | — |   |   |   | 19,836 |   |
|   |   |                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|   | (2)    | Under the treasury-stock method, the Company excluded all options and warrants from the computation of weighted average shares outstanding as a result of the exercise price of the options and warrants being greater than the average market price of the Company’s Common Stock. |   |   |   |   |   |   |   |   |

----

|                                |   |   | 2011   |   |   |   | 2010      |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|-----------|--------|
|                                |   |   |   |   |   |   | As a % of |   |   |   |   |   |   |   | As a % of |   |
|                                |   |   |   |   |   |   | Net Sales |   |   |   |   |   |   |   | Net Sales |   |
|                                |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Net sales                           |   | $      | 21,693 |   |   |   | 100.0     | %      |   | $ | 20,240 |   |   |   | 100.0 | % |
| Cost of sales                       |   |   | 13,498 |   |   |   | 62.2      |   |   |   | 11,903 |   |   |   | 58.8 |   |
| Gross profit                        |   |   | 8,195  |   |   |   | 37.8      |   |   |   | 8,337 |   |   |   | 41.2 |   |
|                                |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |
|                                |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Selling and fulfillment expenses    |   |   | 4,337  |   |   |   | 20.0      |   |   |   | 4,049 |   |   |   | 20.0 |   |
| Marketing expenses                  |   |   | 3,000  |   |   |   | 13.8      |   |   |   | 3,652 |   |   |   | 18.0 |   |
| General and administrative expenses |   |   | 2,112  |   |   |   | 9.8       |   |   |   | 2,091 |   |   |   | 10.4 |   |
| Total operating expenses            |   |   | 9,449  |   |   |   | 43.6      |   |   |   | 9,792 |   |   |   | 48.4 |   |
|                                |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |
|                                |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Operating loss                      |   |   | (1,254 | )      |   |   | (5.8      | )      |   |   | (1,455 | ) |   |   | (7.2 | ) |
|                                |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Interest expense, net               |   |   | (96    | )      |   |   | (0.4      | )      |   |   | (46 | ) |   |   | (0.2 | ) |
|                                |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Net loss                            |   | $      | (1,350 | )      |   |   | (6.2      | )%     |   | $ | (1,501 | ) |   |   | (7.4 | )% |

----

|                                                   |   |   |   |   |   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                   |   | 2011   |   |   | 2010   |   |
|                                                   |   |   |   |   |   |   |   |   |
| Average order size (including shipping & handling) |   | $      | 296.60 |   |   | $      | 279.94 |   |
| New customers added during the period*                 |   |   | 44,498 |   |   |   | 42,532 |   |
|                                                   |   |   |   |   |   |   |   |   |
| *Based on unique email addresses                       |   |   |   |   |   |   |   |   |

|                                   |   | Three Months Ended March, |   | Percentage |
|----------------------------------------|--------|---------------------------|--------|------------|
|  (All data in thousands)          |   | 2011                      |   | 2010       |   | Difference |
|                                   |   |                      |   | As a % of  |   |   |   |   | As a % of |   | Increase |
|                                   |   |                      |   | Net Sales  |   |   |   |   | Net Sales |   | (Decrease) |
|                                   |   |                      |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Operating                              |   | $                         | 1,989  |       | 9.2 | % |   | $ | 1,904 |   | 9.4 | % |   | 4.5 | % |
| Technology                             |   |                      | 1,407  |       | 6.5 |   |   |   | 1,301 |   | 6.4 |   |   | 8.1 |   |
| E-Commerce                             |   |                      | 941    |       | 4.3 |   |   |   | 844 |   | 4.2 |   |   | 11.5 |   |
| Total selling and fulfillment expenses |   | $                         | 4,337  |       | 20.0 | % |   | $ | 4,049 |   | 20.0 | % |   | 7.1 | % |

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| Exhibit Number     |   | Description                                                                                                                                                                                                                                                  |
|----------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                   |   |                                                                                                                                                                                                                                                         |
| 10.1                                   |   | Operating Agreement of Eyefly LLC, dated as of January 4, 2011 (incorporated by reference to the Company’s Current Report on Form 8-K, dated January 10, 2011).                                                                                        |
|                                   |   |                                                                                                                                                                                                                                                         |
| 10.2                                   |   | Management Services Agreement, dated as of January 4, 2011, by and between Eyefly LLC and Bluefly, Inc. (incorporated by reference to the Company’s Current Report on Form 8-K, dated January 10, 2011).                                               |
|                                   |   |                                                                                                                                                                                                                                                         |
| 10.3                                   |   | Management Services Agreement, dated as of January 4, 2011, by and between Eyefly LLC and Tworoger Associates, Ltd. (incorporated by reference to the Company’s Current Report on Form 8-K, dated January 10, 2011).                                   |
|                                   |   |                                                                                                                                                                                                                                                         |
| 10.4                                   |   | Eighth Amendment to Loan and Security Agreement, dated as of January 4, 2011, by and between Bluefly, Inc. and Wells Fargo Bank, National Association (incorporated by reference to the Company’s Current Report on Form 8-K, dated January 10, 2011). |
|                                   |   |                                                                                                                                                                                                                                                         |
| 10.5                                   |   | Pledge Agreement, dated as of January 4, 2011, by and between Bluefly, Inc. and Wells Fargo Bank, National Association (incorporated by reference to the Company’s Current Report on Form 8-K, dated January 10, 2011).                                |
|                                   |   |                                                                                                                                                                                                                                                         |
| 31.1                                   |   | Certification Pursuant to Rule 13a-14(a)/15d-14(a).                                                                                                                                                                                                          |
|                                   |   |                                                                                                                                                                                                                                                         |
| 31.2                                   |   | Certification Pursuant to Rule 13a-14(a)/15d-14(a).                                                                                                                                                                                                          |
|                                   |   |                                                                                                                                                                                                                                                         |
| 32.1                                   |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                      |
|                                   |   |                                                                                                                                                                                                                                                         |
| 32.2                                   |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                      |

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|   | BLUEFLY, INC.           |                           |
|--------|-------------------------|--------------------------------|
|   |                    |                           |   |
|   | By:                     | /s/ Melissa Payner-Gregor |   |
|   | Melissa Payner-Gregor   |                           |
|   | Chief Executive Officer |                           |
|   |                    |                           |   |

|   | By:                     | /s/ Kara B. Jenny |   |
|--------|-------------------------|-------------------|--------|
|   | Kara B. Jenny           |              |
|   | Chief Financial Officer |              |

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