Alloy Inc., which markets to Generation Y reported higher net losses for the fourth quarter of fiscal 2004, and for the entire year.
The New York-based company posted a net loss of $73.3 million for the quarter, compared with $67.6 million for the same period during 2003. This loss included a $73 million non-cash writedown of good will and other intangibles.
Revenue for the quarter totaled $118.1 million, a 1.6% increase over the same quarter in the prior year.
Net merchandise revenue fell by 2.8% to $76.2 million. This was caused primarily by planned reductions in catalog circulation and the closing of poorly performing retail stores.
“In the year since our acquisition of dELIA*s, the merchandise business has consolidated operations, rationalized the store base, strengthened its management team and revitalized sales productivity,” said CEO Matt Diamond in a statement.
Meanwhile, the firm reported a net loss for the year of $91.8 million, up from $75.2 million during the previous year. However, revenue grew by 8.2% to $402.5 million.
