Delia’s, an apparel marketer focused on the young women’s market, generated $45.7 million in revenue during second quarter 2009, up from $44.6 million a year ago. The company took a net loss of just under $.7 million for the most recent quarter, compared with a net loss of just under $5 million a year ago.
Now, there’s net loss and there’s net loss. The current shortfall amounted to 10.2% of the quarter’s revenue, while a y ear ago the net loss was 11.2% of revenue.
This despite the cost of goods sold rising from 66.3% of revenue a year ago to 67.3%. But Delia’s held the lid on its selling, general and administrative expenses, reducing them from just over half of total revenue a year ago to 47.8% for the quarter just ended.
Revenue within its direct segment jumped from $21 million a year ago to $22.1 million. But this sales increase was primarily the result of clearance activity: Gross margins for the company’s direct segment fell from 46.7% a year ago to 44.1%. Delia’s direct operations recorded a $1.1 million operating loss, compared with a $1.3 million operating loss in second-quarter 2008.
In comparison, Delia’s retail sales were nearly flat with last year’s level, increasing from $23.6 million to $23.7 million. But comparable store sales fell 8.1% from second quarter 2008’s level. Gross margin for this segment was 22.1%, down from 22.2%, and the segment took an operating loss of $5.8 million, narrower than the $6.1 million recorded a year ago.
“The second quarter was impacted by the anticipated slowdown in consumer spending as well as the later start to the back-to-school buying season,” CEO Robert Bernard said during a financial results conference call, according to transcription firm Seeking Alpha.
The Social Secretary’s Take: Delia’s is not alone in this last sentiment. Within a number of catalog/retailer financial statements for the second quarter are moanings about the late start to the school year, which in turn led to back-to-school shopping being put off. Jump ahead to November 2009: Thanksgiving this year will be on the 26th, falling relatively late – as in, close to Christmas – in the month. Note to all DMers: Time to start planning how to boost pre-Turkey-Day sales now, folks…or be prepared to hold your peace during the fourth-quarter financial result releases, ‘cause we won’t want to hear it.
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