• Losses widened to US$12.1m versus $5.2m 
  • Revenue fell 16.7% to $33.2m from $39.8m
  • Comparable store sales declined 14.9%
  • Gross margin slipped to 20.9% versus 31.6%

US teen apparel retailer Delia's has seen its second quarter net losses widen, after higher markdowns hurt sales and margins.

Retail revenue fell 14.7% to $24.5m, while revenue from the direct segment declined 21.8% to $8.7m.

Gross margin slipped to 20.9% from 31.6% in the same period of last year, due to increased inventory reserves, lower merchandise margins associated with higher markdowns on legacy product and the deleveraging of occupancy costs.

CEO Tracy Gardner said: "Our second quarter results were indicative of challenging traffic trends, combined with the underperformance of our legacy inventory. We expect these trends to continue throughout the third quarter as we work to move through this inventory."

Gardner said the company is focused on implementing its go-forward strategy that it believes "will better position us for more consistent long term growth". She added: "While we acknowledge that this turnaround will take time, we remain excited about our future potential."

For the first six months of the year, net losses widened to $21.3m from $8.9m in the same period of last year, while revenue fell 15.6% to $68.3m from $81m.