By early afternoon, shares had taken off 6% to $1.06.
The nano-cap recorded revenues of $35.3 million in the three months to Feb. 1, a 34.3% year-over-year decrease. In its retail segment, sales dropped 33.5% to $21.9 million, which included a comparable-store sales decrease of 26.9%.
New York-based dELIA*s reported a net loss of 26 cents a share, narrower than the year-ago quarter's 34-cents-a-share loss.
"While we are not pleased with our fourth quarter financial results, we believe that we have made tangible progress in executing on key initiatives that will set the stage for improved and more consistent financial performance," said CEO Tracy Gardner in a statement.
These key initiatives included transitioning product to reflect an on-trend assortment appealing to 12- to 18-year-old females.
"We created a more unified and relevant brand message across our channels and improved the presentation in our stores, online and in our catalogs. We took a serious and detailed look into our costs during the quarter, and we believe our management-led restructuring will drive $5 million in annualized cost reductions," added Gardner.