Delia*s converts 40% of direct sales to the web
Second quarter sales at New York-based Delia*s Corp., a multichannel retailer to teenage girls and young women, increased 8% to $25.7 million from $23.8 million in the prior year, the company reported today. About 40% of direct sales take place on the Internet, the company says, although it won`t break out numbers. That figure is what the company had been expecting at this time, it says.
The $25.7 million represents core sales. As a result of divestitures, companywide revenue decreased in the second quarter from $37.3 million last year.
"Our core operations remain on track. At retail we saw a substantial 25% increase in sales over last year and we recorded a 4% increase in Direct productivity year-over-year. This performance enabled us to beat analysts` consensus estimates, and we were pleased to accomplish this in what remains a challenging retail environment," said Andrea Weiss, president. "We continue to expect to return to net income profitability in the fourth quarter and to be profitable for the second half taken as a whole.”
On a consolidated basis, as a result of divestitures, net sales for the first half of fiscal 2001 decreased 28% to $62.2 million from $86.4 million in the same period last year. The company`s consolidated loss before interest, taxes, restructuring and minority interest narrowed to $14.3 million from $34.7 million a year ago. On a pro forma basis, excluding restructuring and one-time financing charges, the net loss for the first half of fiscal 2001 was $14.3 million. The consolidated net loss for the first half of fiscal 2001 including these charges was $19.3 million.
Delia*s Corp. operates the Delia*s catalog, the www.delias.com web site and 44 Delia*s retail stores.
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