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dELiA*s achieves flat YOY comparable store sales
25 Nov '09
6 min read
SG&A expenses for the retail segment were $12.1 million, or 34.4% of sales, in the third quarter of 2009 compared to $11.6 million, or 35.5% of sales, in the prior year period, reflecting the leveraging of reduced overhead costs. The operating loss for the third quarter of fiscal 2009 for the retail segment improved to $1.2 million from $2.4 million in the prior year period.
The Company opened 4 store locations during the third quarter of fiscal 2009, ending the period with 108 stores.
Direct Segment Results
Total revenue for the direct segment for the third quarter of fiscal 2009 increased 0.5% to $24.5 million from $24.4 million. Gross margin for the direct segment was 44.5% compared to 46.3% in the third quarter of the prior year due to increased clearance activity.
SG&A expenses for the direct segment were $11.6 million, or 47.2% of sales, compared to $12.3 million, or 50.3% of sales, in the prior year period. The improvement in SG&A as a percentage of sales reflects the leveraging of reductions in overhead costs. The operating loss for the third quarter of fiscal 2009 for the direct segment was $0.7 million compared with an operating loss of $1.0 million in the prior year period.
First Nine Month Results
For the nine-month period ended October 31, 2009, total revenue increased 6.2% to $157.6 million from revenue of $148.4 million for the prior year period. Total gross margin was 34.0% compared to 34.9% for the prior year. SG&A expenses were $67.7 million, or 43.0% of sales, for the first nine months of fiscal 2009, compared to $69.0 million, or 46.5% of sales, for the prior year period.
Net loss for the first nine months of fiscal 2009 improved to $9.6 million, or $0.31 per diluted share, compared to a net loss of $11.7 million, or $0.38 per diluted share, for the first nine months of fiscal 2008. Income from discontinued operations was $6.3 million for first nine months of fiscal 2008. Net loss for the first nine months of fiscal 2008, including the results of discontinued operations, was $5.4 million, or $0.18 per diluted share.
Mr. Bernard continued, “In the first few weeks of November, both of our segments continued to see negative low double-digit comparable sales trends in line with the trends that we experienced in the last two weeks of October. While it is still early in the season, we do not expect to deliver a positive comparable sales trend for the fourth quarter given the current retail environment and our holiday merchandise mix. As a result of these developments, we have tempered our outlook for the remainder of the year, and we do not expect to deliver break-even EBITDA for the full year. In addition, taking into consideration current trends, we anticipate scaling back our stated expansion and capital expenditure plans for 2010 to conserve cash and allow for increased focus on driving sales productivity in the existing store base.”
The Company now expects year-end cash, including restricted amounts, to range from $45 million to $50 million, down from a prior forecast of $50 million to $55 million.
The Company opened 4 store locations during the third quarter of fiscal 2009, ending the period with 108 stores.
Direct Segment Results
Total revenue for the direct segment for the third quarter of fiscal 2009 increased 0.5% to $24.5 million from $24.4 million. Gross margin for the direct segment was 44.5% compared to 46.3% in the third quarter of the prior year due to increased clearance activity.
SG&A expenses for the direct segment were $11.6 million, or 47.2% of sales, compared to $12.3 million, or 50.3% of sales, in the prior year period. The improvement in SG&A as a percentage of sales reflects the leveraging of reductions in overhead costs. The operating loss for the third quarter of fiscal 2009 for the direct segment was $0.7 million compared with an operating loss of $1.0 million in the prior year period.
First Nine Month Results
For the nine-month period ended October 31, 2009, total revenue increased 6.2% to $157.6 million from revenue of $148.4 million for the prior year period. Total gross margin was 34.0% compared to 34.9% for the prior year. SG&A expenses were $67.7 million, or 43.0% of sales, for the first nine months of fiscal 2009, compared to $69.0 million, or 46.5% of sales, for the prior year period.
Net loss for the first nine months of fiscal 2009 improved to $9.6 million, or $0.31 per diluted share, compared to a net loss of $11.7 million, or $0.38 per diluted share, for the first nine months of fiscal 2008. Income from discontinued operations was $6.3 million for first nine months of fiscal 2008. Net loss for the first nine months of fiscal 2008, including the results of discontinued operations, was $5.4 million, or $0.18 per diluted share.
Mr. Bernard continued, “In the first few weeks of November, both of our segments continued to see negative low double-digit comparable sales trends in line with the trends that we experienced in the last two weeks of October. While it is still early in the season, we do not expect to deliver a positive comparable sales trend for the fourth quarter given the current retail environment and our holiday merchandise mix. As a result of these developments, we have tempered our outlook for the remainder of the year, and we do not expect to deliver break-even EBITDA for the full year. In addition, taking into consideration current trends, we anticipate scaling back our stated expansion and capital expenditure plans for 2010 to conserve cash and allow for increased focus on driving sales productivity in the existing store base.”
The Company now expects year-end cash, including restricted amounts, to range from $45 million to $50 million, down from a prior forecast of $50 million to $55 million.
dELiA*s, Inc
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