dELiA*s Q4 retail results in line with revised expectations
25 Mar '10
2 min read
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 fourth quarter and fiscal year ended January 30, 2010.
Robert Bernard, Chief Executive Officer, commented, "Our fourth quarter retail results were in line with our revised expectations, reflecting the merchandise challenges we experienced at the start of the quarter. While our retail segment sales trends were negative, we were able to drive increased merchandise margin through improved inventory management. In the direct segment, our increased promotional activity did not drive revenues to the extent we had anticipated. While overall sales were soft, we were able to deliver our targeted expense reductions and were pleased with our ending inventory and cash positions."
Mr. Bernard continued, "Spring sales are still negative due to our merchandising challenges. Taking into consideration current trends, our focus in 2010 will be on increasing productivity in our existing stores through improved merchandising and leveraging our enhanced systems. In our direct business, we will remain focused on improving the productivity of our mailings and our web marketing. We expect lower direct segment sales, with higher margins, in the first half of the year due to significantly lower clearance inventory levels as compared to Spring 2009. With the focus on improving sales productivity, we anticipate scaling back our store expansion plans for 2010 compared to 2009, limiting our capital expenditures and prudently reducing costs. We expect these initiatives to enable us to end the year with $40 million to $45 million in cash."
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