dELiA*s, Inc. (NASDAQ: DLIA), a direct marketing and retail company comprised of two lifestyle brands primarily targeting teenage girls and young women, today announced the results for its first quarter of fiscal 2010.
Walter Killough, Chief Executive Officer, commented, “Our first quarter sales results, while disappointing, were in line with our recent expectations. Sales trends in both our retail and direct businesses were negative to last year, however, we are pleased with our ending inventory and cash positions.”
Fiscal First Quarter Results
Total revenue for the first quarter of fiscal 2010 decreased 4.1% to $50.0 million from $52.1 million in the first quarter of fiscal 2009. Revenue from the retail segment increased 3.0% to $26.0 million, or 52.0% of total revenue. Revenue from the direct segment decreased 10.7% to $24.0 million, or 48.0% of total revenue.Total gross margin was 31.3% in the first quarter of fiscal 2010, compared to 32.4% in the prior year quarter, reflecting the deleveraging of occupancy costs partially offset by an increase in merchandise margin. Selling, general and administrative (SG&A) expenses were $23.6 million, or 47.2% of sales, for the first quarter of fiscal 2010 compared to $22.2 million, or 42.5% of sales, in the first quarter of fiscal 2009. Included in the first quarter of fiscal 2010 is a pre-tax severance charge of $1.4 million. SG&A excluding the aforementioned severance charge was $22.1 million, or 44.3% of sales. The increase in SG&A as a percent of sales reflects the deleveraging of selling, depreciation and overhead expenses. Net loss for the first quarter of fiscal 2010 was $5.8 million, or $0.19 per diluted share, compared to a net loss for the first quarter of fiscal 2009 of $3.6 million, or $0.12 per diluted share. The net loss for the first quarter of fiscal 2010 includes the aforementioned after-tax severance charge of $1.1 million, or $0.04 per diluted share. The benefit for income taxes for the first quarter of fiscal 2010 was $2.1 million compared to a benefit for income taxes of $1.7 million for the prior year period.