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.
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