Stock Watch: Bluefly Advances as AOL Relationship Blooms

Bluefly Inc. (Nasdaq: BFLY) rose 1 1/2 to 3 7/16 Monday after the online retailer said it will expand a relationship with America Online Inc. (NYSE: AOL).

Bluefly, which sells discount designer clothing and home furnishings, said it will be a "gold tenant" in AOL's men's and women's clothing and home furnishings shopping sections, as well as a "silver tenant" in the kids' clothing area.

"AOL has proven to be a significant, cost-effective customer acquisition tool for Bluefly," said Alanna Richter, vice president of marketing at the New York-based e-tailer. Richter said the expanded agreement "should enhance [Bluefly's] ability to gain high-value customers."