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Q2FY15 revenue plunges 22.4% at clothing retailer dELiA*s
12
Sep '14
Revenue plunged 22.4% year-on-year at NASDAQ-listed dELiA*s, Inc., an omni-channel retail company primarily marketing to teenage girls in the second fiscal quarter ending August 2, 2014.

Total revenues declined 22.4% to $25.7 million in the second quarter of 2014 from $33.2 million in the second quarter of 2013. Comparable store sales too fell 12.4%.

In the second quarter of 2014, gross profit as a percentage of sales stood at 17.1% down from 20.9% in the prior year quarter, which dELiA*s attributed to the deleveraging of occupancy, merchandising and distribution costs.

Selling, general and administrative (SG&A) expenses reached $17.6 million, or 68.2% of revenues, in the second quarter of fiscal 2014 compared to $17.2 million, or 51.9% of revenues, in the prior year period.

dELiA*s said the rise in SG&A expenses is mainly as a result of marketing initiatives related to its social media and e-commerce business as well as stock-based compensation expense.

The operating loss for the second quarter of fiscal 2014 rose to $12.9 million compared to a loss of $10.1 million in the prior year comparable quarter.

Loss from continuing operations grew to $13.6 million in the period under preview against loss from continuing operations for the second quarter of 2013 of $11.1 million.

dELiA*s said it opened one store location and closed five store locations during the second quarter of fiscal 2014, ending the period with overall count of 95 stores.

At the end of the second quarter of 2014, cash and cash equivalents decreased to $3.1 million compared with $4.2 million at the end of the second quarter of 2013.

At the end of the second quarter of 2014, dELiA*s had restricted cash of $8.3 million to support outstanding letters of credit.

Availability under the apparel retailers’ credit facility with Salus Capital was $16.0 million as of the end of the second quarter of 2014, net of borrowings of $5.4 million.

Total net inventories at the end of the second quarter of 2014 went up to $29.2 million compared with $26.8 million at the end of second quarter of fiscal 2013.

As per dELiA*s, the increase in net inventory at the end of the second quarter reflects a shift in the timing of receipts for Fall products.

CEO Tracy Gardner said, “We are intently focused on transforming from a catalog-centric business with stores and a website to a fully-integrated omni-channel experience. This transition is only now beginning to take hold and will be a continued focus of this organization.” (AR)

Fibre2fashion News Desk - India

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