US: Delia's optimistic despite widening Q4 loss
- Q4 loss of US$17.8m
- Gross margin narrows to 7.6%
- Sales fall 34.3%
Teen apparel retailer Delia's said it has made "tangible progress" in executing on key initiatives despite having booked a drop in sales a widening of losses in its fourth-quarter.
Loss from continuing operations amounted to US$17.8m in the three months ended 1 February as the sluggish retail environment impacted business performance. This compared to a loss of $11.1m in the year ago quarter.
Consolidated gross margin narrowed to 7.6% from 29.6% last year, primarily due to lower merchandise margins in connection with clearing legacy product as well as the deleveraging of occupancy costs.
Total sales were down 34.3% to $35.3m, with revenues from the group's retail segment dropping 33.5% to $21.9m. Comparable store sales fell 26.9%.
CEO Tracy Gardner said: "While we are not pleased with our fourth quarter financial results, we believe that we have made tangible progress in executing on key initiatives that will set the stage for improved and more consistent financial performance. Our newly assembled and talented team is working to achieve our vision for Delia's."
Help test our new apparel sourcing tool.
- Using worker surveys to drive supply chain change
- Rana Plaza four years on – Timeline of change
- Trump and Brexit get a dose of pragmatism
- No US rush to Myanmar despite end to sanctions
- Where does VF supply chain sit in growth strategy?
- Amazon wins on-demand apparel manufacturing patent
- Driving ban intensifies Myanmar logistics hurdles
- Trump bolsters "buy American" with executive order
- Inditex, Adidas and Patagonia top ethical report
- Calls for supply chain transparency standard
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Myanmar - ISA Country Report
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts