dELiA*s Q1 loss narrows, achieves 16% rise in total sales
06 Jun '06
4 min read
Bernard concluded, "We finished the quarter with apparel inventories below our plan and significantly lower than the prior year's quarter on an average store basis. We remain optimistic in returning to positive comparable store sales in the second half of the fiscal year."
Gross profit for the first quarter increased to $19.6 million or 37.9 percent of net sales, compared with $15.7 million, or 35.2 percent percent of net sales for the fiscal 2005 first quarter. Gross profit in the company's Direct Segment was 43.9 percent of net sales for the quarter, an increase of 280 basis points versus the year-ago quarter and reflects an improved merchandise margin.
Gross profit in the company's Retail Segment, which includes distribution, buying, occupancy and merchandising costs, was 22.6 percent percent of net sales for the quarter, an increase of 110 basis points versus the prior year's quarter.
The loss from continuing operations for the first quarter of 2006 decreased $1.7 million, to $1.2 million, compared with the fiscal 2005 first quarter of $2.9 million. This year's first quarter loss includes the impact of stock option expense of $0.3 million, or $(0.01) per diluted share, which was not included last year. The improved results in the first quarter of 2006 were primarily the result of increased sales and a higher gross profit margin in the Direct Segment.
Income from operations (before interest) in the Direct Segment transitioned from a loss of $0.5 million in the fiscal 2005 first quarter to income of $1.7 million for the first quarter of 2006.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
