US: Delia's posts narrowed Q1 loss
- Q1 revenue dips 1.6%
- Gross margin improves
- Net loss down to $4.5m
US retailer Delia's has narrowed its net loss for the first quarter of the year, despite a slight dip in revenue during the period.
Total revenue for the first quarter of fiscal 2011 decreased 1.6% to $49.1m, from $50.0m in the first quarter of fiscal 2010, Delia's said.
Revenue from the retail segment increased 4.0% to $27.0m, or 55.0% of total revenue. Revenue from the direct segment decreased 7.7% to $22.1m, or 45.0% of total revenue.
Total gross margin increased to 33.5% in the first quarter of fiscal 2011, compared to 31.3% in the prior year quarter, driven by improved merchandise margin, the company reported.
Net loss for the first quarter of fiscal 2011 was $4.5m, compared to a net loss for the first quarter of fiscal 2010 of $5.8m.
Walter Killough, chief executive officer of Delia's, said: "During the first quarter, the continued execution of strategic changes in merchandising and operations has resulted in improved performance in our business.
"In the retail segment, we delivered positive comparable store sales, with significant improvement in merchandise margins, and reduced our EBITDA loss for the quarter by over 50%.
"The direct segment results were in line with our expectations, and we have made good progress in redirecting our marketing spend to alternative vehicles which we believe will drive increased revenue in this segment."
Killough added that Michele Donnan Martin stepped down from her role as president of the Delia's brand this week.
"We would like to thank her for the contributions she made to the business and wish her all the best as she pursues other opportunities," he said.
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