US: Delia’s satisfied despite US$5m Q2 loss
Teen apparel retailer Delia's cut its second quarter loss marginally to US$5m from $5.1m last year, thanks to buoyant retail revenues.
The company's sales for the three months to 2 August were up 10.8% to $58.1m, led by a 22% hike in retail sales to $23.6m.
Direct revenues were up 4.3% to $34.5m, and overall comparable store sales increased 5.2%.
Gross margins were 35.3% during the quarter, up from 34.6% during the same period last year - helped by improvements in initial mark-ups and full price selling.
However, these improvements were partially offset by higher shipping costs in the direct segment, the company said.
Direct operating income was $0.7m, up from $0.4m in the same period last year, while the company's retail operations recorded a $5.5m loss, compared to a $5.7m loss last year.
"We are pleased with our important back-to-school selling period so far, with high single-digit comps in July and continued strength thus far in August," said Robert Bernard, Delia's CEO.
"We have said that back-to-school would mark an inflection point for the Delia's brand, and these results are indicative of why we are quite optimistic about our future."
First-half revenues were up 10.4% to $121.7m, with the net loss $8.9m, up from last year's figure of $8.4m.
Help test our new apparel sourcing tool.
Apparel retail giant Gap Inc is to close about 100 stores in 2009 after posting a 7.9% drop in fourth quarter profit to US$243m....
Department store operator Kohl's Corporation is planning conservatively for 2009 after fourth quarter profit fell 18.4% to US$336m....
Victoria's Secret owner Limited Brands Inc today (26 February) posted a 96% slump in fourth quarter profit after being weighed down by weak holiday sales, a write-down on its La Senza chain, and costs...
Specialist apparel retailer Tween Brands swung to a fourth quarter loss of US$13.9m after the company experienced the "most difficult" trading period in its history....
Fourth quarter profit at Sears Holdings has more than halved after the US department store group was hit by falling sales and the cost of closing 32 of its shops....
Off-price retail group The TJX Companies is aiming to cut costs by US$150m this year after fourth quarter profit fell 16.6% to $251m....
Children's wear specialist Carter's recorded a US$75.1m profit for fiscal 2008, despite a slight fall in fourth quarter net income to $27.3m....
Retailer Abercrombie & Fitch blamed a "nightmare" fourth quarter as the company's profit slumped to US$68.4m from $216.8m for the same period last year....
- Outlook 2017 – What else is the industry watching?
- Outlook 2017 – What next for apparel sourcing?
- Outlook 2017 – Strategies for sourcing success
- Is China about to burst its apparel trade bubble?
- Outlook 2017 – Challenges and opportunities
- 22 dos and dont's – When sourcing goes wrong
- M&S quality focus finally lifts clothing sales
- MAS Holdings planning second industrial park
- Sri Lanka on track to regain EU GSP+ benefits
- Update - Bangladesh "business as usual"
- Global apparel markets: product developments and innovations, October 2016
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022
- Anti-odour clothing: fresh fashion for an active lifestyle
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar