Shipping, Fuel Costs Lead to Delia’s Losses

Delia’s, Inc. reported a net loss of $3.9 million for the first quarter, compared with a loss of $3.3 million during the same period last year.

The apparel direct marketer and retailer posted revenue of $63.5 million for the quarter ended May 3, a 10% increase over $57.8 million in the prior year.

The New York company posted direct sales of $40.6 million for the quarter, an increase over $38.1 million in the prior year.

The firm reported a gross profit margin for its direct segment of 41.7% of sales, down from 44.4% in the prior year. Delia’s attributed this mostly to reduced net shipping and handling income spawned by an increased proportion of orders with free shipping and to significantly higher fuel costs.

In addition, the company said its selling, general and administrative expenses decreased by 350 basis points in the quarter to 37.8% from last year’s 41.3%, primarily due to savings in catalog costs as a percentage of sales.

Operating margins increased by 75 basis points, and operating income for the direct segment in the first quarter increased to $1.6 million as compared to $1.2 million last year, according to Delia’s.