Selling, general and administrative (SG&A) expenses were $26.2 million, or 39.1% of sales, for the fourth quarter of fiscal 2010 compared to $27.2 million, or 41.1% of sales, in the fourth quarter of fiscal 2009. The decrease in SG&A as a percent of sales reflects the leveraging of reduced selling and overhead costs, partially offset by an increase in depreciation expense.

Net income for the fourth quarter of fiscal 2010 was $0.7 million, or $0.02 per diluted share, compared to a net loss for the fourth quarter of fiscal 2009 of $0.8 million, or $0.03 per diluted share. The net loss for the fourth quarter of fiscal 2009 included an initial gift card breakage benefit of $1.3 million, or $0.04 per diluted share, and a store impairment charge of $0.3 million, or $0.01 per diluted share.

The benefit for income taxes for the fourth quarter of fiscal 2010 was $2.1 million compared to a benefit for income taxes of $1.1 million for the prior year period.

Results by Segment

Retail Segment Results

Total revenue for the retail segment for the fourth quarter of fiscal 2010 increased 1.7% to $34.9 million from $34.3 million in the fourth quarter of fiscal 2009. Retail comparable store sales decreased 2.3% for the fourth quarter of fiscal 2010 compared to a decrease of 10.4% for the fourth quarter of fiscal 2009. Gross margin for the retail segment, which includes distribution, occupancy and merchandising costs, was 27.0% compared to 27.3% in the prior year period. The decline in gross margin reflects the deleveraging of occupancy and freight costs, partially offset by improved merchandise margin.

SG&A expenses for the retail segment were $12.8 million, or 36.7% of sales, in the fourth quarter of fiscal 2010 compared to $12.6 million, or 36.8% of sales, in the prior year period, reflecting leveraging of selling expenses, partially offset by increased overhead and depreciation expenses.

If you liked this article you might like

DELiA*s to File Ch. 11 and Liquidate Before Christmas

DELiA*s Surges, Hits Month Mark In The Green

It's a Nightmare Before Christmas for These Zombie Retailers

GameStop Tumbles After Missing The Mark On Sales

Troubled Apparel Retailers DELiA*s, Wet Seal Bounce