dELiA*s Narrows Q4 Loss Despite Sales Drop

In Industry News, Reports, What's New by Jeff PrineLeave a Comment

deliasNew York—dELiA*s Inc. reported last week a narrowed fourth quarter loss despite a drop in revenues.

For the quarter ended Feb. 1, the teen/tween specialty retailer posted a net loss of 26 cents a share, narrower than the year-ago quarter’s 34-cents-a-share loss.

‘More Unified Brand Message’

Net revenue fell 34.3% to $35.3 million from $53.7 million a year ago. Sales in its retail segment dropped 33.5% to $21.9 million which included a comparable store sales drop of 26.9%.

Consolidated gross margin was 7.6% compared to 29.6% in the prior year quarter, “due to lower merchandise margins in connection with clearing legacy product as well as the deleveraging of occupancy costs,” the company said.

Loss from continuing operations was $17.8 million, compared to a loss from continuing operations of $11.1 million in fourth quarter 2012.

“While we are not pleased with our fourth quarter financial results, we believe that we have made tangible progress in executing on key initiatives that will set the stage for improved and more consistent financial performance,” said Tracy Gardner, chief executive. “Our newly assembled and talented team is working to achieve our vision for dELiA*s. During the fourth quarter, we continued to transition our product to reflect an on-trend lifestyle fashion assortment tailored to the 12 to 18 year-old girl. We created a more unified and relevant brand message across our channels and improved the presentation in our stores, online and in our catalogs.”

Gardner added that a management-led restructuring should result in about $5 million a year in cost reductions.



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