Strong comparable store sales performance at dELiA*s
dELiA*s Inc. a multi-channel retail company comprised of two lifestyle brands primarily targeting teenage girls and young women, announced the results for its first quarter of fiscal 2012.
First Quarter Fiscal 2012 Highlights:
Total revenue increased 6.7% to $52.5 million from $49.1 million in the first quarter of fiscal 2011. Revenue from the retail segment increased 6.8% to $28.9 million, including a comparable store sales increase of 7.3%. Revenue from the direct segment increased 6.6% to $23.6 million.
Consolidated gross margin was 33.2% compared to 33.5% in the prior year quarter, primarily due to increased shipping and handling costs partially offset by increased merchandise margins and leveraging of occupancy costs.
Net loss was $3.7 million, or $0.12 per diluted share, compared to net loss for the first quarter of fiscal 2011 of $4.5 million, or $0.14 per diluted share. The net loss for the first quarter of fiscal 2012 included a gift card breakage benefit of $0.6 million, or $0.02 per diluted share, and income tax expense of $43,000. The net loss for the first quarter of fiscal 2011 included a gift card breakage benefit of $38,000, as well as a benefit for income taxes of $1.0 million, or $0.03 per diluted share.
Walter Killough, Chief Executive Officer, commented, “Our first quarter results showed increased sales in each of our businesses. The strong comparable store sales performance and higher merchandise margins in retail, along with positive sales driven by a double digit increase in the number of orders in our direct segment, reflect favorable reactions customers are having to the merchandising changes we are making.
“At the same time, disciplined inventory management and tight expense controls also contributed to improved financial results. We are encouraged that the momentum we established in the first quarter has continued into the first 3 weeks of May.”
Results by Segment
Retail Segment Results
Total revenue for the retail segment for the first quarter of fiscal 2012 increased 6.8% to $28.9 million from $27.0 million in the first quarter of fiscal 2011. Retail comparable store sales increased 7.3% for the first quarter of fiscal 2012 compared to an increase of 0.9% for the first quarter of fiscal 2011.
Gross margin for the retail segment, which includes distribution, occupancy and merchandising costs, was 26.7% for the first quarter of fiscal 2012 compared to 24.5% in the prior year period. The increase in gross margin resulted primarily from higher merchandise margins, driven by increased full price selling and fewer markdowns, and the leveraging of occupancy costs.
Selling, general and administrative (SG&A) expenses for the retail segment were $10.6 million, or 36.7% of sales, in the first quarter of fiscal 2012 compared to $11.0 million, or 40.7% of sales, in the prior year period. The decrease in SG&A expenses in dollars and as a percent of sales reflects reduced selling and depreciation expense.