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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 fourth quarter and fiscal year ended January 29, 2011.
Walter Killough, Chief Executive Officer, commented, “We have taken important steps to turn around our business and believe we are entering 2011 in a stronger position than at this time a year ago. We continued to see the impact of our strategic changes during the fourth quarter as both our retail and direct businesses showed improvement. In the retail segment, while reduced traffic in the month of December drove a negative comparable store sales result, we were able to deliver increased conversion compared to last year in all three months of the quarter. In addition, we ended the year with a strong balance sheet, with cash and inventories in line with our expectations.”
Mr Killough continued, “Our business has continued to improve, and through February we have been able to achieve positive comparable store sales performance in five of the last six months. We are pleased to see that our strategic changes are also leading to higher margins in all channels, on a lower expense base. These trends have continued through the first two weeks of March. We remain focused on driving increased productivity in all of our business channels in order to improve profitability.”
Fiscal Fourth Quarter Results
Total revenue for the fourth quarter of fiscal 2010 increased 0.9% to $66.9 million from $66.3 million in the fourth quarter of fiscal 2009. Revenue from the retail segment increased 1.7% to $34.9 million, or 52.2% of total revenue. Revenue from the direct segment remained flat at $32.0 million, or 47.8% of total revenue.
Total gross margin was 36.8% in the fourth quarter of fiscal 2010, compared to 37.2% in the prior year quarter, reflecting increased occupancy and freight costs, partially offset by improved merchandise margin.