• Net loss improved to $4.7m
  • Revenue increased 2.4% to $45.7m
  • Cautiously optimistic about back-to-school

Teen apparel retailer Delia's Inc has managed to narrow its second quarter loss after lower costs and clearance offers helped drive sales higher.
 
The New York based firm said net loss for the quarter improved to $4.7m or $0.15 per share, compared to a net loss of $6.6m or $0.21 per share, a year earlier.

Total revenue at its Delia's and Alloy brands rose 2.4% to $45.7m from $44.6m, with retail sales up 0.3% to $23.7m and direct sales increasing 4.9% to $22.1m.

"As expected, sales trends continued to be challenging during the second quarter, as the consumer followed a need-based buying pattern and store traffic slowed," said CEO Robert Bernard.
 
Clearance sales ate into total gross margins, pushing them down to 32.7% from 33.7% last time.

Bernard added: "We are cautiously optimistic that we will deliver positive back-to-school sales results, although we await the remaining three weeks of peak selling season in some of our highest volume districts."

Click here to read the full second-quarter results statement.