dELiA*s, Inc. (NASDAQ:
a multi-channel 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 28, 2012.
Walter Killough, Chief Executive Officer, commented, “Our fourth quarter marked the end of a transition period in merchandising for dELiA*s. Despite disappointing overall fourth quarter results, we were pleased with the sales and margin performance of product bought under our new merchandising strategy. The comparable store sales decline and the margin contraction in the quarter reflected weak sell-through on sweater and outerwear key items associated with our prior merchandising approach.
Since the start of January we are beginning to see customer acceptance and positive sales in all channels with our new merchandising strategy, which reflects shorter lead times and more frequent deliveries of new product, with the ability to chase business effectively. We are optimistic that this shift in strategy, among other key initiatives in real estate and the web, will position us to drive improved financial performance for the long term.”
Fiscal Fourth Quarter Results
Total revenue for the fourth quarter of fiscal 2011 decreased 2.0% to $65.6 million from $66.9 million in the fourth quarter of fiscal 2010. Revenue from the retail segment decreased 3.6% to $33.6 million, or 51.3% of total revenue. Revenue from the direct segment was flat at $32.0 million, or 48.7% of total revenue.
Total gross margin decreased to 32.3% in the fourth quarter of fiscal 2011, compared to 36.8% in the prior year quarter, predominantly reflecting reduced merchandise margins related to markdowns and the deleveraging of occupancy costs.
Selling, general and administrative (SG&A) expenses were $26.3 million, or 40.1% of sales, for the fourth quarter of fiscal 2011 compared to $26.2 million, or 39.1% of sales, in the fourth quarter of fiscal 2010. The increase in SG&A expenses as a percent of sales reflects the deleveraging of selling and overhead expenses.