dELiA*s Corp (Nasdaq:DLIAD), a marketer to consumers between the ages of 13 and 24, today announced a series of initiatives to enhance shareholder value and increase long-term profitability. These include:

  • Board authorisation of a plan to repurchase up to $2m of dELiA*s Class A common stock in the open market and in private transactions from time to time, effective immediately;
  • Exploration of strategic alternatives with respect to its Internet communities: gURL.com, TheSpark.com, SparkNotes.com and SparkMatch.com;
  • The renegotiation of the company's agreement with MarketSource, eliminating the company's commitment to spend $2.5m in advertising and marketing services in fiscal 2001. MarketSource, which previously served as a reseller of online advertising for the company, will become the company's exclusive third party sales agent for premium online advertising.

"The directors of the company, in authorising the stock repurchase programme, have demonstrated their confidence in the underlying strength of the company," said Stephen Kahn, chairman and CEO. "The directors and management view this programme as a compelling opportunity to enhance shareholder value."

Mr Kahn added, "We will fund the stock repurchase program out of savings that we have realized from cost-cutting initiatives at our Internet businesses, and from additional cost synergies resulting from the merger of dELiA*s and iTurf. Following our decision to close iTurf.com, we are continuing to take a hard look at expenses throughout our organisation and expect to identify further areas for cost savings in the near term."

Mr. Kahn continued: "We expect to begin evaluating potential partners for these [Internet] businesses in the near future. Each of our online community properties enjoys tremendous traffic and has strong editorial content that can be leveraged offline, and we believe they represent attractive and unique media opportunities."

About dELiA*s Corp
dELiA*s Corp. consists of two core businesses targeting consumers between the ages of 13 and 24. The dELiA*s branded business markets apparel, accessories and home furnishings via the dELiA*s catalogue, www.dELiAs.com and dELiA*s retail stores. The Company's Internet business comprises online teen properties that provide a compelling assortment of community features and proprietary content, including interactive magazines, proprietary content, chat rooms, posting boards, personal homepages and e-mail. These properties include www.gURL.com, www.TheSpark.com, www.SparkNotes.com and www.SparkMatch.com.