Q1 losses widen at Delia’s despite 10% sales hike

US: Q1 losses widen at Delia’s despite 10% sales hike

By just-style.com | 30 May 2008

Retailer Delia's Inc posted an increased first quarter loss of US$3.9m, despite an upturn in revenues and excellent trading during April.

The US company's total revenues in the three months to 3 May were up 10% to $63.5m, although rising costs reduced overall margins by 1.6%, despite improved merchandise margins.

The net loss, equivalent to $0.13 per diluted share, compares to a net loss of $3.3m in the same period last year.

Retail sales were up 16.2% to $22.9m, while direct sales rose 6.6% to $40.6m, with retail comparable store sales increasing 2%.

"Given the substantial progress we are making in improving our operating capabilities, we are pleased that we ended the quarter on a decidedly positive note, with retail comps in the mid-teens in April," said Delia's CEO Robert Bernard.

"We significantly improved retail merchandise margins over last year, and we continued to invest in buildling solid foundations in product development, planning and store training."

Bernard added that Delia's retail and direct concepts were "at an inflection point", becoming a focused, consistent brand rather than a market-based merchandise collection.

Sectors: Apparel, Finance, Retail

Companies: Delia’s Inc