Delia’s Corp. reported a fourth quarter net loss of $12.4 million, a widening loss over the $6 million deficit it reported a year ago. Its sales were relatively flat, rising to $49.8 million from $49 million in the same period.
Delia’s direct sales during the quarter fell 16%, spurred by a 23% reduction in its catalog circulation. But retail sales were up 35%, driven primarily by new store openings.
The New York-based accessories and apparel marketer fared a bit better during the entire year: While its sales fell from $143.7 million to $137.6 million, the company trimmed its net loss from $28.5 million to just under $19 million.
"The fourth quarter, which represents our Holiday season, continued to be impacted significantly by the same product and planning miscues that negatively affected our Back to School and Fall business," Stephen Kahn, the company’s chief executive officer said in a statement.
Kahn continued, "Off-trend and over-planned merchandise contributed to significant margin deterioration and depressed sales throughout the fourth quarter. By mid-March, business started returning to normalized gross margins and we are now seeing improved performance from our repositioned, market-driven product assortment in all channels."
