dELiA*s, Inc., a multi-channel retail company primarily marketing to teenage girls, announced the results for its fourth quarter of fiscal 2013 (consisting of 13 weeks compared to the fourth quarter of 2012, which consisted of 14 weeks) and fiscal year 2013 (consisting of 52 weeks compared to fiscal year 2012, which consisted of 53 weeks).
Fourth Quarter Fiscal 2013 Highlights:
Total revenues decreased 34.3% to $35.3 million from $53.7 million in the fourth quarter of fiscal 2012. Revenues from the retail segment decreased 33.5% to $21.9 million, including a comparable store sales decrease of 26.9%. Revenues from the direct segment decreased 35.5% to $13.5 million.
Consolidated gross margin was 7.6% compared to 29.6% in the prior year quarter, primarily due to lower merchandise margins in connection with clearing legacy product as well as the deleveraging of occupancy costs.
Loss from continuing operations was $17.8 million, compared to a loss from continuing operations for the fourth quarter of fiscal 2012 of $11.1 million.
Tracy Gardner, Chief Executive Officer, commented, “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. 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.
“We took a serious and detailed look into our costs during the quarter, and we believe our management-led restructuring will drive $5 million in annualized cost reductions. With our recent capital raise, our balance sheet is significantly improved and allows us to execute on our strategy.
“At dELiA*s, it’s a new day, a new team, and a new company. We have fresh product unique to dELiA*s, an established omni-channel platform, a growing social connection with our customers, and improved processes to support our long-term objectives. We will continue to execute on the key initiatives we believe will fortify our foundation and bring strong and consistent sales and profitability to dELiA*s for the long term.”