dELiA*s, Inc. Announces Third Quarter 2009 Results

Robert Bernard, Chief Executive Officer, commented, "During the third
quarter we continued our trend of improved operating results, while
reducing inventory levels, controlling costs and preserving cash. We
achieved flat year-over-year comparable store sales and expanded
merchandise margin in the retail segment for the August through
September Back-to-School period. However, we experienced weak sales
performance in both segments of the business in October, which
intensified during the last two weeks of the month and drove our
negative comparable store sales results for the quarter in our retail
segment."

Fiscal Third Quarter Results

Total revenue for the third quarter of fiscal 2009 increased 4.9% to
$59.7 million from $56.9 million in the third quarter of fiscal 2008.
Revenue from the retail segment increased 8.2% to $35.2 million, or
59.0% of total revenue. Revenue from the direct segment increased 0.5%
to $24.5 million, or 41.0% of total revenue.

Total gross margin was 36.5% in the third quarter of fiscal 2009,
compared to 37.0% in the prior year quarter, reflecting increased
clearance sales in the direct segment partially offset by improved
inventory management.

Selling, general and administrative (SG&A) expenses were $23.7 million,
or 39.6% of sales, for the third quarter of 2009 compared to $23.8
million, or 41.9% of sales, in the third quarter of 2008. The
improvement in SG&A as a percent of sales was a result of reduced
overhead costs.

The operating loss for the third quarter of 2009 was $1.9 million, an
improvement of approximately $1.5 million, or 43.4%, from an operating
loss for the third quarter of 2008 of $3.4 million. The operating loss
in the third quarter of 2008 included a noncash impairment charge of
$0.6 million related to an underperforming store location.

Net loss for the third quarter of fiscal 2009 was $1.3 million, or $0.04
per diluted share, compared to net income of $0.8 million, or $0.03 per
diluted share, for the third quarter of fiscal 2008. The benefit for
income taxes for the third quarter of 2009 was $0.7 million compared to
a benefit for income taxes of $4.4 million for the prior year period.

Income from discontinued operations for the third quarter of 2008 was
$2.7 million. Net income for the third quarter of fiscal 2008, including
the results of discontinued operations, was $3.5 million, or $0.11 per
diluted share.

Results by Segment

Retail Segment Results

Total revenue for the retail segment for the third quarter of fiscal
2009 increased 8.2% to $35.2 million from $32.6 million in the third
quarter of fiscal 2008. Retail comparable store sales decreased 3.6% for
the third quarter of fiscal 2009 compared to an increase of 7.6% for the
third quarter of fiscal 2008. Gross margin for the retail segment, which
includes distribution, occupancy and merchandising costs was 30.9%
compared to 30.0% in the prior year period. Gross margin was driven by
an increase in merchandise margin and improved inventory management.

SG&A expenses for the retail segment were $12.1 million, or 34.4% of
sales, in the third quarter of 2009 compared to $11.6 million, or 35.5%
of sales, in the prior year period, reflecting the leveraging of reduced
overhead costs. The operating loss for the third quarter of fiscal 2009
for the retail segment improved to $1.2 million from $2.4 million in the
prior year period.

The Company opened 4 store locations during the third quarter of fiscal
2009, ending the period with 108 stores.

Direct Segment Results

Total revenue for the direct segment for the third quarter of fiscal
2009 increased 0.5% to $24.5 million from $24.4 million. Gross margin
for the direct segment was 44.5% compared to 46.3% in the third quarter
of the prior year due to increased clearance activity.

SG&A expenses for the direct segment were $11.6 million, or 47.2% of
sales, compared to $12.3 million, or 50.3% of sales, in the prior year
period. The improvement in SG&A as a percentage of sales reflects the
leveraging of reductions in overhead costs. The operating loss for the
third quarter of fiscal 2009 for the direct segment was $0.7 million
compared with an operating loss of $1.0 million in the prior year period.

First Nine Month Results

For the nine-month period ended October 31, 2009, total revenue
increased 6.2% to $157.6 million from revenue of $148.4 million for the
prior year period. Total gross margin was 34.0% compared to 34.9% for
the prior year. SG&A expenses were $67.7 million, or 43.0% of sales, for
the first nine months of fiscal 2009, compared to $69.0 million, or
46.5% of sales, for the prior year period.

Net loss for the first nine months of fiscal 2009 improved to $9.6
million, or $0.31 per diluted share, compared to a net loss of $11.7
million, or $0.38 per diluted share, for the first nine months of fiscal
2008. Income from discontinued operations was $6.3 million for first
nine months of fiscal 2008. Net loss for the first nine months of fiscal
2008, including the results of discontinued operations, was $5.4
million, or $0.18 per diluted share.

Mr. Bernard continued, "In the first few weeks of November, both of our
segments continued to see negative low double-digit comparable sales
trends in line with the trends that we experienced in the last two weeks
of October. While it is still early in the season, we do not expect to
deliver a positive comparable sales trend for the fourth quarter given
the current retail environment and our holiday merchandise mix. As a
result of these developments, we have tempered our outlook for the
remainder of the year, and we do not expect to deliver break-even EBITDA
for the full year. In addition, taking into consideration current
trends, we anticipate scaling back our stated expansion and capital
expenditure plans for 2010 to conserve cash and allow for increased
focus on driving sales productivity in the existing store base."

The Company now expects year-end cash, including restricted amounts, to
range from $45 million to $50 million, down from a prior forecast of $50
million to $55 million.

Conference Call and Webcast Information

A conference call to discuss third quarter 2009 results is scheduled for
Tuesday, November 24, 2009 at 10:00 a.m. eastern time. The conference
call will be webcast live at www.deliasinc.com.
A replay of the call will be available until December 22, 2009 and can
be accessed by dialing (888) 286-8010 and providing the pass code number
26361106.

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 direct marketing and retail company comprised of two
lifestyle brands primarily targeting teenage girls and young women. Its
brands -- dELiA*s and Alloy -- generate revenue by selling apparel,
accessories, footwear and room furnishings to consumers through direct
mail catalogs, websites, and dELiA*s mall-based specialty retail stores.

Forward-Looking Statements

This announcement may contain forward-looking statements made in
reliance upon the safe harbor provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, including statements regarding our
expectations and beliefs regarding our future results or performance.
Because these statements apply to future events, they are subject to
risks and uncertainties. When used in this announcement, the words
"anticipate", "believe", "estimate", "expect", "expectation", "should",
"would", "project", "plan", "predict", "intend" and similar expressions
are intended to identify such forward-looking statements. Our actual
results could differ materially from those projected in the
forward-looking statements. Additionally, you should not consider past
results to be an indication of our future performance. For a discussion
of risk factors that may affect our results, see the "Risk Factors That
May Affect Future Results" section of our filings with the Securities
and Exchange Commission, including our annual report on Form 10-K and
quarterly reports on Form 10-Q. We do not intend to update any of the
forward-looking statements after the date of this announcement to
conform these statements to actual results, to changes in management's
expectations or otherwise, except as may be required by law.

dELiA*s, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share data)
                                                                        October 31,    January 31,    November 1,
                                                                        2009           2009           2008
ASSETS                                                                  (unaudited)                   (unaudited)
CURRENT ASSETS:
Cash and cash equivalents                                               $     26,396   $     92,512   $   7,966
Inventories, net                                                              36,936         33,942       40,208
Prepaid catalog costs                                                         4,765          2,759        5,344
Deferred income taxes                                                         2,000          2,000        -
Other current assets                                                          11,187         5,481        6,396
Assets held for sale                                                          -              -            18,735
TOTAL CURRENT ASSETS                                                          81,284         136,694      78,649
PROPERTY AND EQUIPMENT, NET                                                   56,484         53,164       54,423
GOODWILL                                                                      12,073         12,073       12,073
INTANGIBLE ASSETS, NET                                                        2,423          2,440        2,447
RESTRICTED CASH                                                               15,753         -            -
OTHER ASSETS                                                                  563            430          196
ASSETS HELD FOR SALE                                                          -              -            28,170
TOTAL ASSETS                                                            $     168,580  $     204,801  $   175,958
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable                                                        $     22,231   $     21,389   $   30,190
Bank loan payable                                                             -              -            13,813
Current portion of mortgage note payable                                      -              2,205        2,260
Accrued expenses and other current liabilities                                27,073         28,822       26,676
Income taxes payable                                                          715            25,243       -
Liabilities held for sale                                                     -              -            330
TOTAL CURRENT LIABILITIES                                                     50,019         77,659       73,269
DEFERRED CREDITS AND OTHER LONG-TERM LIABILITIES                              12,163         11,813       10,166
TOTAL LIABILITIES                                                             62,182         89,472       83,435
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred Stock, $.001 par value; 25,000,000 shares authorized, none          -              -            -
issued
Common Stock, $.001 par value; 100,000,000 shares authorized;
31,201,514, 31,199,889 and 31,108,981 shares issued and                       31             31           31
outstanding, respectively
Additional paid-in capital                                                    98,430         97,728       97,494
Retained earnings (accumulated deficit)                                       7,937          17,570       (5,002  )
TOTAL STOCKHOLDERS' EQUITY                                                    106,398        115,329      92,523
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                              $     168,580  $     204,801  $   175,958

dELiA*s, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
                                                       For the Thirteen Weeks Ended
                                                       October 31, 2009              November 1, 2008
NET REVENUES                                           $     59,736        100.0 %   $     56,946        100.0 %
Cost of goods sold                                           37,957        63.5  %         35,895        63.0  %
GROSS PROFIT                                                 21,779        36.5  %         21,051        37.0  %
Selling, general and administrative expenses                 23,678        39.6  %         23,835        41.9  %
Impairment of long-lived assets                              -             0.0   %         574           1.0   %
TOTAL OPERATING EXPENSES                                     23,678        39.6  %         24,409        42.9  %
OPERATING LOSS                                               (1,899     )  -3.2  %         (3,358     )  -5.9  %
Interest expense, net                                        (97        )  -0.2  %         (209       )  -0.4  %
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES          (1,996     )  -3.3  %         (3,567     )  -6.3  %
Benefit for income taxes                                     (650       )  -1.1  %         (4,377     )  -7.7  %
(LOSS) INCOME FROM CONTINUING OPERATIONS                     (1,346     )  -2.3  %         810           1.4   %
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX              5             0.0   %         2,708         4.8   %
NET (LOSS) INCOME                                      $     (1,341     )  -2.2  %   $     3,518         6.2   %
BASIC (LOSS) INCOME PER SHARE:
(LOSS) INCOME FROM CONTINUING OPERATIONS               $     (0.04      )            $     0.03
INCOME FROM DISCONTINUED OPERATIONS                    $     0.00                    $     0.08
NET (LOSS) INCOME                                      $     (0.04      )            $     0.11
WEIGHTED AVERAGE BASIC COMMON SHARES OUTSTANDING             31,036,236                    30,995,942
DILUTED (LOSS) INCOME PER SHARE:
(LOSS) INCOME FROM CONTINUING OPERATIONS               $     (0.04      )            $     0.03
INCOME FROM DISCONTINUED OPERATIONS                    $     0.00                    $     0.08
NET (LOSS) INCOME                                      $     (0.04      )            $     0.11
WEIGHTED AVERAGE DILUTED COMMON SHARES OUTSTANDING           31,036,236                    31,015,124

dELiA*s, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
                                                              For the Thirty-Nine Weeks Ended
                                                              October 31, 2009               November 1, 2008
NET REVENUES                                                  $     157,565       100.0 %    $     148,407       100.0 %
Cost of goods sold                                                  103,968       66.0  %          96,625        65.1  %
GROSS PROFIT                                                        53,597        34.0  %          51,782        34.9  %
Selling, general and administrative expenses                        67,698        43.0  %          69,021        46.5  %
Impairment of long-lived assets                                     -             0.0   %          574           0.4   %
TOTAL OPERATING EXPENSES                                            67,698        43.0  %          69,595        46.9  %
OPERATING LOSS                                                      (14,101    )  -8.9  %          (17,813    )  -12.0 %
Interest expense, net                                               (141       )  -0.1  %          (501       )  -0.3  %
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES                 (14,242    )  -9.0  %          (18,314    )  -12.3 %
Benefit for income taxes                                            (4,598     )  -2.9  %          (6,570     )  -4.4  %
LOSS FROM CONTINUING OPERATIONS                                     (9,644     )  -6.1  %          (11,744    )  -7.9  %
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX                     11            0.0   %          6,330         4.3   %
NET LOSS                                                      $     (9,633     )  -6.1  %    $     (5,414     )  -3.6  %
BASIC AND DILUTED (LOSS) INCOME PER SHARE:
LOSS FROM CONTINUING OPERATIONS                               $     (0.31      )             $     (0.38      )
INCOME FROM DISCONTINUED OPERATIONS                           $     0.00                     $     0.20
NET LOSS                                                      $     (0.31      )             $     (0.18      )
WEIGHTED AVERAGE BASIC & DILUTED COMMON SHARES OUTSTANDING          31,033,822                     30,912,987

dELiA*s Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                                        For the Thirty-Nine Weeks Ended
                                                                        October 31, 2009 November 1, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                                $     (9,633  )  $     (5,414  )
Income from discontinued operations                                           11               6,330
Loss from continuing operations                                               (9,644  )        (11,744 )
Adjustments to reconcile net loss to net cash used in operating
activitiesof continuing operations:
Depreciation and amortization                                                 7,479            6,450
Stock-based compensation                                                      700              761
Impairment of long-lived assets                                               -                574
Changes in operating assets and liabilities:
Inventories                                                                   (2,994  )        (12,785 )
Prepaid catalog costs and other assets                                        (7,845  )        (1,433  )
Restricted cash                                                               (15,753 )        -
Income taxes payable                                                          (24,528 )        121
Accounts payable, accrued expenses and other liabilities                      (1,040  )        7,385
Total adjustments                                                             (43,981 )        1,073
Net cash used in operating activities of continuing operations                (53,625 )        (10,671 )
Net cash provided by operating activities of discontinued operations          11               4,350
NET CASH USED IN OPERATING ACTIVITIES                                         (53,614 )        (6,321  )
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                                                          (10,299 )        (10,770 )
NET CASH USED IN INVESTING ACTIVITIES                                         (10,299 )        (10,770 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank borrowing                                                  -                13,813
Payment of mortgage note payable                                              (2,205  )        (155    )
Proceeds from exercise of employee stock options                              2                -
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES                           (2,203  )        13,658
NET DECREASE IN CASH AND CASH EQUIVALENTS                                     (66,116 )        (3,433  )
CASH AND CASH EQUIVALENTS, beginning of period                                92,512           11,399
CASH AND CASH EQUIVALENTS, end of period                                $     26,396     $     7,966

dELiA*s, Inc.
SELECTED OPERATING DATA
(in thousands, except number of stores)
(unaudited)
                                      For The Thirteen Weeks Ended        For The Thirty-Nine Weeks Ended
                                      October 31, 2009  November 1, 2008  October 31, 2009           November 1, 2008
Channel net revenues (1):
Retail                                $     35,235      $     32,569           $    84,151           $    79,121
Direct:
Catalog                                     4,275             4,641                 12,769                12,525
Internet                                    20,226            19,736                60,645                56,761
Total direct                                24,501            24,377                73,414                69,286
Total net revenues                    $     59,736      $     56,946           $    157,565          $    148,407
Internet % of total directrevenues          83     %          81     %              83      %             82      %
Comparable store sales                      -3.6   %          7.6    %              -3.8    %             5.4     %
Catalogs mailed (1)                         14,576            14,725                33,148                33,693
Inventory - retail                    $     20,348      $     21,242           $    20,348           $    21,242
Inventory - direct (1)                $     16,588      $     18,966           $    16,588           $    18,966
Number of stores:
Beginning of period                         104               94                    97                    86
Opened                                      4                 2                     13           *        12           **
Closed                                      -                 -                     2            *        2            **
End of period                               108               96                    108                   96
Total gross sq. ft @ endof period           411.7             366.1                 411.7                 366.1

* Totals include one store that was closed, remodeled and reopened in
the first quarter of fiscal 2009, and one store that was closed and
relocated to an alternative site in the same mall during the second
quarter of fiscal 2009.

** Totals include one store that was closed and relocated to an
alternative site in the same mall during the first quarter of fiscal
2008, and one store that was closed and relocated to an alternative site
in the same mall during the second quarter of fiscal 2008.

(1) Restated to exclude the CCS business

SOURCE: dELiA*s, Inc.

dELiA*s, Inc. 
David Dick, 212-590-6200 
Chief Financial Officer 
or 
FD 
Leigh Parrish, Caren Villarreal 
212-850-5600

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