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dELiA*s Inc announces first quarter results
27 May '11
5 min read
Gross margin for the retail segment, which includes distribution, occupancy and merchandising costs, was 24.5% compared to 19.6% in the prior year period. The increase in gross margin reflects improved merchandise margin and the leveraging of occupancy costs.
SG&A expenses for the retail segment were $11.0 million, or 40.7% of sales, in the first quarter of fiscal 2011 compared to $11.8 million, or 45.3% of sales, in the prior year period. SG&A expenses in the first quarter of fiscal 2010 included a severance charge of $0.7 million. The decrease in SG&A expenses as a percentage of sales reflects the leveraging of selling expenses and reduced overhead costs, partially offset by increased depreciation expense.
The operating loss for the first quarter of fiscal 2011 for the retail segment was $4.4 million compared to $6.6 million in the prior year period.
The Company opened one store location during the first quarter of fiscal 2011, ending the period with 115 stores.
Direct Segment Results
Total revenue for the direct segment for the first quarter of fiscal 2011 decreased 7.7% to $22.1 million from $24.0 million in the prior year period.
Gross margin for the direct segment was 44.6% compared to 44.1% in the first quarter of the prior year, including an increase in merchandise margin.
SG&A expenses for the direct segment were $10.9 million, or 49.3% of sales, compared to $11.8 million, or 49.3% of sales, in the prior year period. SG&A expenses in the first quarter of fiscal 2010 included a severance charge of $0.7 million. The decrease in SG&A expenses in dollars reflects reduced overhead and depreciation expenses, partially offset by an increase in selling expenses.
The operating loss for the first quarter of fiscal 2011 for the direct segment was $1.0 million as compared to $1.2 million in the prior year period.
New Revolving Credit Facility
The Company is close to finalizing an agreement with GE Capital, Corporate Retail Finance for a new, five year, $25 million secured revolving credit facility. This new facility would replace the Company's current $10 million letter of credit facility with Wells Fargo. The Company expects to close on the new facility shortly.
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.
SG&A expenses for the retail segment were $11.0 million, or 40.7% of sales, in the first quarter of fiscal 2011 compared to $11.8 million, or 45.3% of sales, in the prior year period. SG&A expenses in the first quarter of fiscal 2010 included a severance charge of $0.7 million. The decrease in SG&A expenses as a percentage of sales reflects the leveraging of selling expenses and reduced overhead costs, partially offset by increased depreciation expense.
The operating loss for the first quarter of fiscal 2011 for the retail segment was $4.4 million compared to $6.6 million in the prior year period.
The Company opened one store location during the first quarter of fiscal 2011, ending the period with 115 stores.
Direct Segment Results
Total revenue for the direct segment for the first quarter of fiscal 2011 decreased 7.7% to $22.1 million from $24.0 million in the prior year period.
Gross margin for the direct segment was 44.6% compared to 44.1% in the first quarter of the prior year, including an increase in merchandise margin.
SG&A expenses for the direct segment were $10.9 million, or 49.3% of sales, compared to $11.8 million, or 49.3% of sales, in the prior year period. SG&A expenses in the first quarter of fiscal 2010 included a severance charge of $0.7 million. The decrease in SG&A expenses in dollars reflects reduced overhead and depreciation expenses, partially offset by an increase in selling expenses.
The operating loss for the first quarter of fiscal 2011 for the direct segment was $1.0 million as compared to $1.2 million in the prior year period.
New Revolving Credit Facility
The Company is close to finalizing an agreement with GE Capital, Corporate Retail Finance for a new, five year, $25 million secured revolving credit facility. This new facility would replace the Company's current $10 million letter of credit facility with Wells Fargo. The Company expects to close on the new facility shortly.
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.
dELiA*s Inc
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