Home / Knowledge / News / Apparel/Garments / Revenue from retail segment up at dELiA*s

Revenue from retail segment up at dELiA*s

27
Nov '10
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 third quarter of fiscal 2010.

Walter Killough, Chief Executive Officer, commented, "During the third quarter, we experienced a sequential improvement in sales trends in both the retail and direct segments. The improvement in our businesses that we began to see in August continued through the remainder of the quarter. In retail, while traffic has remained inconsistent, we have improved our sales execution which has resulted in increased conversion rates. As a result, we were able to deliver positive comparable store sales performance for the last two months of the quarter."

Mr. Killough continued, "This positive sales performance has continued into the month of November. At the same time, we realize that in order to become profitable we need to continue to rationalize our expense structure. As a result, we have identified $8 million in annualized expense savings that we have begun to implement in the fourth quarter of 2010, with a total targeted reduction of over $10 million in expenses for fiscal 2011."

Fiscal third quarter results

Total revenue for the third quarter of fiscal 2010 increased 1.5% to $60.6 million from $59.7 million in the third quarter of fiscal 2009. Revenue from the retail segment increased 5.6% to $37.2 million, or 61.4% of total revenue. Revenue from the direct segment decreased 4.5% to $23.4 million, or 38.6% of total revenue.

Total gross profit was 34.3% in the third quarter of fiscal 2010 as compared to 36.5% in the prior year quarter, predominantly reflecting lower merchandise margins in both segments and the deleveraging of occupancy costs.

Selling, general and administrative (SG&A) expenses were $24.5 million, or 40.3% of sales, for the third quarter of 2010 compared to $23.7 million, or 39.6% of sales, in the third quarter of 2009. The increase in SG&A as a percent of sales reflects the deleveraging of overhead expenses.

In the third quarter of fiscal 2010, the Company recorded a pre-tax non-cash goodwill impairment charge of $7.6 million related to its direct marketing segment. This charge is expected to have no impact on the Company's business operations or bank credit relationships.

The operating loss for the third quarter of 2010, including the goodwill impairment charge, was $11.2 million, as compared to an operating loss for the third quarter of 2009 of $1.9 million.

Net loss for the third quarter of fiscal 2010 increased to $9.7 million, or $0.31 per diluted share, including the goodwill impairment charge of $0.24 per diluted share, compared to a net loss of $1.3 million, or $0.04 per diluted share, for the third quarter of fiscal 2009.

The benefit for income taxes for the third quarter of fiscal 2010 was $1.7 million as compared to $0.7 million for the third quarter of fiscal 2009.


Must ReadView All

Pic: Shutterstock

Textiles | On 5th Aug 2021

US manufacturing activity grows in Jul; textile mills report fall: ISM

Economic activity in the US manufacturing sector grew in July, with...

Pic: Shutterstock

Textiles | On 5th Aug 2021

UK inflation to hit 3.9% in early 2022, 2% in 2023, predicts NIESR

UK consumer price inflation will reach 3.9 per cent early next year,...

Pic: Shutterstock

Retail | On 5th Aug 2021

Walmart again ranked largest firm by revenue, Amazon 3rd: Fortune

Walmart has been again ranked the largest company in the world by...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Good tidings expected for textile industry

Textile Industry, Head honchos

Textile Industry
Head honchos

Quality & affordability to affect market acceptability of new fibres

Textile Industry, Head honchos

Textile Industry
Head honchos

Switch was not 100% pandemic related

C Maennich,

C Maennich

Trützschler, one of the world's leading textile machinery manufacturers,...

Noemi Sanchez,

Noemi Sanchez

Established since 1846, Evlox is a specialised denim manufacturer with its ...

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Silverio Baranzano, Fitesa

Silverio Baranzano
Fitesa

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search