This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: dELiA*s Wins Over Investors With Turnaround Plan

Gardner has already identified changes that should improve the comapny's operations and sales margins quickly, Tilson said. For example, in clothing retail, tops, or shirts, are more profitable to sell than bottoms, or pants and skirts, and most retailers account for this discrepancy by stocking tops and bottoms in a three-to-one ratio, Tilson explained.

However, dELiA*s used to stock merchandise with a one-to-one ratio--something Gardner changed when she came on board, Tilson said. Furthermore, although dELiA*s sends out 20 million catalogues per year, it was not sending one out during the retail-bonanza week after Thanksgiving. Tilson said a post-Thanksgiving catalog is in the works this year.

Merchandising was also a problem for dELiA*s. Tilson noted that instead of designing great clothes and telling factories to make those clothes, dELiA*s was buying from generic lineups that factories pitched to them and stocking clothes that were also available elsewhere. The retailer is now working on new designs, with some slated to appear in the back-to-school collection and the bulk of the design effort coming in for the holiday collection.

"There's a many-month lead time to get new clothes out," Tilson explained. He expects Gardner to bring in new talent to help right the ship in the next few months. DELiA*s shares closed up nine cents, or 6.3%, to $1.50 on the Nasdaq Wednesday, giving the company a market capitalization of $47.91 million.

--Written by Lisa Allen

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
DLIA $0.00 21.95%
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%
TSLA $226.03 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs