Home / Knowledge / News / Apparel/Garments / Third quarter revenue declines - dELiA*s
Third quarter revenue declines - dELiA*s
24
Nov '11
dELiA*s, Inc., a direct marketing and retail company comprised of two lifestyle brands primarily targeting teenage girls and young women, announced the results for its third quarter of fiscal 2011.

Walter Killough, Chief Executive Officer, commented, “While we were pleased to see solid performance in most categories during the third quarter, we did miss our sales and margin expectations. The majority of the shortfall was due to fashion misses in key item tops purchased under our previous merchandise strategy.

We are encouraged by early reads on our most recent deliveries as we are seeing positive consumer response to both key items as well as other new products that reflect our go-forward merchandise strategy. In addition, we have better planned promotions for holiday this year which combined with our improved merchandise assortment should lead to improved sales and profitability performance in the fourth quarter.”

Mr. Killough continued, “We are confident that with the initiatives we have underway in merchandising and marketing we will have a strong foundation from which to drive long term growth in sales and profitability.”

Fiscal Third Quarter Results
Total revenue for the third quarter of fiscal 2011 decreased 4.2% to $58.1 million from $60.6 million in the third quarter of fiscal 2010. Revenue from the retail segment decreased 2.7% to $36.2 million, or 62.3% of total revenue. Revenue from the direct segment decreased 6.5% to $21.9 million, or 37.7% of total revenue.

Total gross margin decreased to 32.3% in the third quarter of fiscal 2011, compared to 34.3% in the prior year quarter, predominantly reflecting reduced merchandise margins related to markdowns in the retail segment and the deleveraging of occupancy costs.

Selling, general and administrative (SG&A) expenses were $23.1 million, or 39.7% of sales, for the third quarter of fiscal 2011 compared to $24.5 million, or 40.3% of sales, in the third quarter of fiscal 2010. The decrease in SG&A expenses in dollars and as a percent of sales reflects selling and overhead expense reductions.

Net loss for the third quarter of fiscal 2011 was $4.4 million, or $0.14 per diluted share, compared to a net loss for the third quarter of fiscal 2010 of $9.7 million, or $0.31 per diluted share. Included in the third quarter of fiscal 2010 was a goodwill impairment charge of $7.6 million, or $0.24 per diluted share.

The provision for income tax expense for the third quarter of fiscal 2011 was $26,000, or $0.00 per diluted share, compared to a benefit for income taxes of $1.7 million, or $0.05 per diluted share, for the prior year period.

Results by Segment
Retail Segment Results
Total revenue for the retail segment for the third quarter of fiscal 2011 decreased 2.7% to $36.2 million from $37.2 million in the third quarter of fiscal 2010. Retail comparable store sales decreased 1.7% for the third quarter of fiscal 2011 compared to a decrease of 0.4% for the third quarter of fiscal 2010.


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search