Comparable store sales trends turning positive - dELiA*s
26 Aug '10
5 min read
The operating loss for the second quarter of fiscal 2010 for the retail segment increased to $7.7 million from a loss of $5.8 million in the prior year period.
The Company opened seven store locations during the second quarter of fiscal 2010, including one relocated store and one remodeled store, and closed one store, ending the period with 115 stores.
Direct Segment Results Total revenue for the direct segment for the second quarter of fiscal 2010 decreased 14.5% to $18.9 million from $22.1 million in the prior year period.
Gross profit for the direct segment was 44.4% in the second quarter of fiscal 2010 compared to 44.1% in the prior year period, driven by an increase in postage, handling and other revenues as a percent of sales, partially offset by lower merchandise margins.
SG&A expenses for the direct segment were $9.8 million, or 52.0% of sales, in the second quarter of fiscal 2010, compared to $10.8 million, or 49.1% of sales, in the prior year period. The increase in SG&A as a percentage of sales reflects the deleveraging of selling and overhead expenses.
The operating loss for the second quarter of fiscal 2010 for the direct segment was $1.4 million compared with a loss of $1.1 million in the prior year period.
First Six Month Results For the six-month period ended July 31, 2010, total revenue decreased 4.8% to $93.2 million from revenue of $97.8 million for the prior year period. Total gross profit was 30.1% compared to 32.5% for the prior year period. SG&A expenses were $45.1 million, or 48.4% of sales, for the first six months of fiscal 2010, compared to $44.0 million, or 45.0% of sales, for the prior year period.
Net loss for the first six months of fiscal 2010 increased to $12.7 million, or $0.41 per diluted share, compared to a net loss of $8.3 million, or $0.27 per diluted share, for the first six months of fiscal 2009. The net loss for the first six months of fiscal 2010 includes an after-tax severance charge of $1.1 million, or $0.04 per diluted share, recorded in the first quarter.
The Company now expects year-end cash, including restricted amounts, to range from $35 million to $40 million, down from a prior forecast of $40 to $45 million.
dELiA*s, Inc. is a direct marketing and retail company comprised of two lifestyle brands primarily targeting teenage girls and young women. Its brands - dELiA*s and Alloy - generate revenue by selling apparel, accessories, footwear and room furnishings to consumers through direct mail catalogs, websites, and dELiA*s mall-based specialty retail stores.
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