US: Retail headwinds hit Delia's Q4 sales
- Q4 sales down 34.2%
- Expected gross margin of 7-8%
- Expected operating loss of $17-18m
Delia's has booked a drop in fourth-quarter sales as the teen apparel retailer continues with its turnaround plan.
In the three month period, sales dropped 34.2% to US$35.4m from $53.7m a year earlier. Retail segment sales decreased 33% to $22m, including a comparable store sales drop of 26.9%.
Revenue from the group's direct segment slid 36% to $13.4m.
Consolidated gross margin for the quarter is expected to be between 7% and 8% compared to 29.6% in the prior year quarter, the retailer said.
Loss from continuing operations is expected to be between $17m and $18m.
"We remain in the early stages of our turnaround and we believe the headwinds that continue to pressure the retail industry hampered our progress in the fourth quarter," said CEO Tracy Gardner. "That said, we continued to make progress in executing on key initiatives that we believe will drive improved performance in our business longer term."
- Three tipping points for RFID in fashion
- Capacity building key to Myanmar momentum
- Cotton “too diverse” for fixed sustainability plan
- Apparel buyers point to potential in Africa
- China undisputed giant of garment exports
- Wal-Mart silent on Rana Plaza lawsuit
- SOURCING: Global sourcing snapshots launched
- VF Corp lifts outlook despite Q1 profit fall
- Garment group reiterates labour rights commitment
- Nike criticised over Vietnam sourcing ethics