The operating loss for the fourth quarter of fiscal 2010 for the retail segment was $3.3 million as compared to $3.0 million in the prior year period. The fiscal 2009 fourth quarter operating loss included an initial gift card breakage benefit of $0.7 million and impairment charge of $0.5 million.
The Company closed one store location during the fourth quarter of fiscal 2010, ending the period with 114 stores.
Direct Segment Results
Total revenue for the direct segment for the fourth quarter of fiscal 2010 remained flat at $32.0 million as compared to the prior year period. Gross margin for the direct segment was 47.6% compared to 47.9% in the fourth quarter of the prior year due to a decrease in merchandise margin.SG&A expenses for the direct segment were $13.3 million, or 41.7% of sales, compared to $14.6 million, or 45.7% of sales, in the prior year period. The decrease in SG&A expenses as a percentage of sales reflects the leveraging of reduced selling, overhead and depreciation expenses. The operating income for the fourth quarter of fiscal 2010 for the direct segment was $2.0 million as compared to $1.3 million in the prior year period. The fiscal 2009 fourth quarter operating income included an initial gift card breakage benefit of $0.6 million. Fiscal Year Results For the fiscal year ended January 29, 2011, total revenue decreased 1.4% to $220.7 million from total revenue of $223.9 million for the prior year. Total gross margin was 33.3% compared to 35.0% for the prior year. SG&A expenses were $95.7 million, or 43.4% of sales, for fiscal 2010, compared to $94.9 million, or 42.4% of sales, for the prior year period. Net loss in fiscal 2010 was $21.6 million, or $0.70 per diluted share, compared to a net loss of $10.4 million, or $0.34 per diluted share, for fiscal 2009. The net loss in fiscal 2010 included an after-tax severance charge of $1.1 million, or $0.04 per diluted share, and a goodwill impairment charge of $7.6 million, or $0.24 per diluted share. The net loss in fiscal 2009 included the aforementioned gift card breakage benefit of $1.3 million, or $.04 per diluted share, and store impairment charge of $0.3 million, or $0.01 per diluted share.
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