Delia's says it expects to report a Q4 loss from continuing operations of US$17M-US$18M on revenue of US$35.4M, down 34.2% year-over-year, when it reports fiscal 2013 results on March 20
February 18, 2014
– dELiA*s, Inc. (NASDAQ:DLIA), a multi-channel retail company primarily marketing to teenage girls, today announced preliminary results for its fourth quarter of fiscal 2013.
“Risk Factors That May Affect Future Results”
dELiA*s, Inc. results for all periods presented reflect its former Alloy business as a discontinued operation. All financial results in this press release are for continuing operations only unless otherwise stated.
Please note that the fourth quarter of fiscal 2013 contained 13 weeks, while the fourth quarter of fiscal 2012 contained 14 weeks. While the audit of the Company’s 2013 results will not be completed until earnings are fully announced, for the fourth quarter fiscal 2013:
Total revenue decreased 34.2% to $35.4 million as compared to $53.7 million in the fourth quarter of fiscal 2012. Revenue from the retail segment decreased 33.0% to $22.0 million, including a comparable store sales decrease of 26.9%. Revenue from the direct segment decreased 36.0% to $13.4 million.
Consolidated gross margin is expected to be between 7.0% and 8.0% compared to 29.6% in the prior year quarter.
Loss from continuing operations is expected to be between $17.0 million and $18.0 million. This does not include any potential non-cash impairment charges.
Total net inventories were $19.6 million at year end compared to $24.8 million at the end of the prior year.
Additionally, the Company ended the 2013 fiscal year with $3.2 million of cash and cash equivalents and $14.5 million in borrowings under its revolving credit facility.
Tracy Gardner, Chief Executive Officer, commented, "We remain in the early stages of our turnaround and we believe the headwinds that continue to pressure the retail industry hampered our progress in the fourth quarter. That said, we continued to make progress in executing on key initiatives that we believe will drive improved performance in our business longer term. We significantly reduced inventory levels in underperforming legacy merchandise during one of the most challenging retail environments we have seen in several years. We also saw highly encouraging green shoots in the new Spring merchandise that delivered toward the end of the quarter. While small wins thus far, we strongly believe that the steps we are taking to rejuvenate the business are putting dELiA*s on the path to recovery. Our strengthened capital structure with the recent offering should provide the support necessary to execute on our long term plans.”
The Company intends to release fourth quarter and full year fiscal 2013 financial results on March 20, 2014 and will host a conference call at 4:30 P.M. Eastern Time that same day. The conference call will be webcast live at www.deliasinc.com. A replay of the call will be available through April 20, 2014 at 11:59 P.M. Eastern Time and can be accessed by dialing (877) 870-5176 and providing the pass code number 7376702.
During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
About dELiA*s, Inc.
dELiA*s, Inc. is a multi-channel retail company primarily marketing to teenage girls. It generates revenue by selling apparel, accessories and footwear to consumers through its website, direct mail catalogs and mall-based retail stores.
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