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Revenue from continuing operations up by 9.5% at dELiA*s
26 Nov '08
5 min read
In the third quarter, the Company recorded a noncash impairment charge of $574 thousand related to an underperforming store location that was opened in 2005.
The operating loss for the third quarter of 2008, including the above impairment charge, was $3.1 million, an improvement of approximately $1.0 million, or a 250 basis point improvement as a percentage of sales compared to last year.
Income from discontinued operations, net of income taxes, was $2.6 million in this year's third quarter compared to $2.7 million in last year's comparable quarter. Included in this year's pre-tax results for discontinued operations was $550 thousand of professional fees incurred during the quarter related to the sale of CCS.
Total revenue for the retail segment increased 19.4% to $32.6 million from the third quarter of fiscal 2007. Retail comparable store sales increased 7.6% for the third quarter compared with a decrease of 1.5% for the fiscal third quarter of 2007. Gross margin for the retail segment, which includes distribution, occupancy and merchandising costs, increased to 30.0% from 27.2% in the prior year period due to improvement in product margins, as well as leverage of occupancy costs.
The Company opened two store locations during the third quarter of fiscal 2008, ending the period with 96 stores.
Total revenue for the direct segment was $24.4 million, a 1.4% decrease. Sales were impacted by a shifting of catalog circulation from the third quarter to the fourth. Gross margin for the direct segment decreased to 46.3% from 47.1% due primarily to increases in postage and handling costs attributable to fuel surcharges. SG&A expenses, which include allocated overhead, were $12.1 million, or 49.7% of sales compared to $12.4 million, or 50.1% of sales in the prior year period, reflecting the reductions in catalog circulation in both brands. The quarterly operating loss for the direct segment was $0.8 million compared with an operating loss of $0.7 million in the prior year period.
For the nine-month period ended November 1, 2008, total revenue from continuing operations increased 10.4% to $148.4 million from revenue of $134.4 million for the nine-month period of 2007.
For the nine-month period ended November 1, 2008, total gross margin was 34.9% compared to 34.7% for the same period the prior year. SG&A expenses were $68.4 million, or 46.1% of sales, for the first nine months of fiscal 2008 compared to $64.3 million, or 47.9% of sales, for the prior fiscal year period.
The operating loss for the third quarter of 2008, including the above impairment charge, was $3.1 million, an improvement of approximately $1.0 million, or a 250 basis point improvement as a percentage of sales compared to last year.
Income from discontinued operations, net of income taxes, was $2.6 million in this year's third quarter compared to $2.7 million in last year's comparable quarter. Included in this year's pre-tax results for discontinued operations was $550 thousand of professional fees incurred during the quarter related to the sale of CCS.
Total revenue for the retail segment increased 19.4% to $32.6 million from the third quarter of fiscal 2007. Retail comparable store sales increased 7.6% for the third quarter compared with a decrease of 1.5% for the fiscal third quarter of 2007. Gross margin for the retail segment, which includes distribution, occupancy and merchandising costs, increased to 30.0% from 27.2% in the prior year period due to improvement in product margins, as well as leverage of occupancy costs.
The Company opened two store locations during the third quarter of fiscal 2008, ending the period with 96 stores.
Total revenue for the direct segment was $24.4 million, a 1.4% decrease. Sales were impacted by a shifting of catalog circulation from the third quarter to the fourth. Gross margin for the direct segment decreased to 46.3% from 47.1% due primarily to increases in postage and handling costs attributable to fuel surcharges. SG&A expenses, which include allocated overhead, were $12.1 million, or 49.7% of sales compared to $12.4 million, or 50.1% of sales in the prior year period, reflecting the reductions in catalog circulation in both brands. The quarterly operating loss for the direct segment was $0.8 million compared with an operating loss of $0.7 million in the prior year period.
For the nine-month period ended November 1, 2008, total revenue from continuing operations increased 10.4% to $148.4 million from revenue of $134.4 million for the nine-month period of 2007.
For the nine-month period ended November 1, 2008, total gross margin was 34.9% compared to 34.7% for the same period the prior year. SG&A expenses were $68.4 million, or 46.1% of sales, for the first nine months of fiscal 2008 compared to $64.3 million, or 47.9% of sales, for the prior fiscal year period.
dELiA*s Inc
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