New book by Larry Connors Click here Improve your trading - See how
dELiA*s, Inc. (DLIA) announced its financial results on Thursday for its first quarter of fiscal 2009. Total revenue for the first quarter of fiscal 2009 increased 11.3% to $52.1 million from $46.8 million in the first quarter of fiscal 2008. Revenue from the retail segment increased 10.0% to $25.2 million, or 48.4% of total revenue. Revenue from the direct segment increased 12.5% to $26.9 million, or 51.6% of total revenue.
Net loss for the first quarter of fiscal 2009 improved to $3.6 million, or $0.12 per diluted share, compared to a net loss of $5.9 million, or $0.19 per diluted share, for the first quarter of fiscal 2008. This beat the consensus estimate from analysts for a loss of $0.14 per share.
Robert Bernard, CEO of dELiA*s, commented in a conference call, "Our business continued its positive momentum into the beginning of the new fiscal year. In light of the current environment, we saw double-digit revenue growth in both segments of our business. We also saw comparable store sales results that were slightly positive for the quarter, and we saw an expansion of our merchandise margins in the retail segment with inventories down 20% in units on an average store basis."
He continued, "The growth in our direct segment was primarily driven by full price Spring selling and increased clearance sales of Q4 merchandise in February. Our revenue segment growth was driven by our Spring and Summer collections that focused on outfitting. We remain particularly strong in bottoms, namely denim, as we continue to take market share in that category. While sales for our knit business were still slow, woven tops helped us drive the tops category for the quarter. Strong sales in these categories and limited markdowns for all categories enabled us to achieve record merchandise margins for the retail segment in Q1."
Mr. Bernard explained, "We will focus on improving our store productivity in Q2. We plan to make capital investments with the installation of traffic counters in most of our stores to provide productivity data. We believe the return on this investment will be paid back within 6 months through comparable store sales increases and a better investment in payroll hours."
He added, "We will seek to drive our merchandise margin rates to mid-to-upper 50% range. We are limiting our sourcing base to vendors that offer us multi-country sourcing abilities to order large quantities at more favorable costs. We are decreasing the inventory investment in our stores. In addition, we are opening stores that are rated 15%, net of closures, in remodels and locations. We are being cautious in our real estate strategy for 2010 and continue to monitor rent deals in the best malls in the country. By combining these these retail drivers with a conservative approach to our direct business, we believe that we can deliver consistently positive EBITDA."
Mr. Bernard concluded, "We expect mid-single digit negative comparable stores in the retail segment. However, we believe that we can increase profitability in Q2. We are operating with a solid balance sheet that includes over $60 million in cash and little or no debt."
KNOBIAS DISCLAIMER: All statements made in this article were made by the Company and do not in any way reflect the opinions of Knobias. Knobias is not a registered broker-dealer, nor investment advisor, and does not endorse or recommend any securities mentioned. This story is provided for informational purposes only and is not intended for trading purposes. Knobias shall not be liable for any actions taken in reliance of any information provided herein. Republication or redistribution of Knobias content is expressly prohibited without prior written consent of Knobias.com, LLC.
ABOUT KNOBIAS: Knobias is a premier financial information provider of trading and investing data covering all U.S. equities for investors and security professionals. Knobias is best described by its three major components: Real-time desktop applications providing quotes, charts, level 2, analysis etc.; Knobias RAiDAR providing thousands of real-time news stories, alerts and documents daily; Knobias fundamentals providing a comprehensive database of fundamental research information.
If your company wishes to participate in the EventX newswire, please contact Knobias: http://www.knobias.com
Knobias.com, LLC 601-978-3399 601-978-3675 info@knobias.com www.knobias.com/cmtx
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
