• 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."