3/29/13

dELiA*s management gets a shake-up after a disappointing Q4

An executive resigns and the apparel chain considers selling its Alloy brand.

Stefany Zaroban , Associate Director of Research

Total sales were up in 2012 for women’s apparel retailer dELiA*s Inc., but the fourth quarter was a disappointment, as web and foot traffic lagged in January, says CEO Walter Killough.

DELiA*s, No. 198 in the Internet Retailer Top 500 Guide, also says brand president Dyan Jozwick has resigned effective Wed., March 27. The merchant did not disclose the reason for Jozwick’s departure but says an unnamed consultant is filling in temporarily until a replacement is found.

The retailer is also still looking for a new chief executive, as Killough announced plans to step down in January, effective April 1. He has since agreed to stay on until a new CEO is named.

In addition, dELiA*s is considering selling off its Alloy clothing brand, which operates a print catalog and e-commerce site at AlloyApparel.com. The merchant says it has hired a strategic advisor to explore a potential sale.

For the fiscal year ended Feb. 2, 2013, dELiA*s, reported:

            •           Direct sales of $97.1 million, a 3.4% increase compared with $93.9 million in 2011. The merchant did not break out e-commerce sales, but Internet Retailer estimates the web comprised about 88.5% of direct sales in 2012, or $85.9 million. That’s a 3.4% increase over an estimated $83.1 million of e-commerce sales in 2011. The remainder of dELiA*s direct sales come from its catalog business.

            •           Total sales increased about 2.6% to $222.7 million from $217.2 million.

            •           Comparable store sales increased 3.4%.

            •           Net loss was $21.6 million compared with $22.7 million in 2011.

“For the year, the dELiA*s brand had improved performance, driven primarily by the retail segment,” Killough says. “However, the fourth quarter proved disappointing, as a slowdown in mall and web traffic during January caused a negative change in trends in both segments.”

For the fourth quarter, the merchant also reported:

            •           Direct sales, including e-commerce, of $33.4 million, a 4.4% increase compared with $32.0 million.

            •           Total sales of $66.2 million, about a 1.0% increase over $65.6 million.

            •           Net loss of $10.7 million compared with $4.2 million

            •           Comparable store sales dropped 0.3%.

Topics:

2012 online sales, Alloy, Delia's, dELiA*s, Dyan Jozwick, Top 500, Top 500 Guide, Walter Killough

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