NEW YORK — Delia’s Corp.’s chief financial officer stepped down Tuesday as the beleaguered company reported its third-quarter loss more than tripled.
Chief operating officer Evan?Guillemin, who served as Delia’s cfo from 1996 to 2000, succeeds outgoing cfo Dennis Goldstein and will handle both positions.
For the three months ended Nov. 2, the New York-based multichannel Generation Y retailer recorded a net loss of $10.7 million, or 23 cents a diluted share. That compares with last year when the company sustained a loss of $3.2 million, or 7 cents.
Included in the net loss were corporate severance and call center relocation charges totaling $1.6 million, or 4 cents. Moreover, Delia’s took a $2.3 million, or 5 cent, pretax charge to cost of sales for the liquidation of back-to-school inventories that underperformed at retail.
Sales for the period inched up 1.2 percent to $32.9 million from $32.5 million, but same-store sales plunged 12.1 percent on a b-t-s shopping season "nadir."
"The second and third quarters were the most difficult and disappointing in Delia’s history," said chief executive officer Stephen Kahn on a conference call with analysts. "Merchandising and promotional miscues killed back-to-school. We rode the bohemian trend too long and missed opportunities in the athletic and preppy looks. However, the vast majority of these problems are discrete and discretionary and have been addressed."
By channel, retail sales grew 23 percent on the strength of new store openings, but direct sales fell 19 percent on a 10 percent decrease in catalog circulation.
In an attempt to right the foundering company, in August, Delia’s took "austere" steps to reduce costs and work through excess inventory. To address overhead, the company reduced corporate payroll by $3.5 million, or about 20 percent, and immediately liquidated extra inventory to be better positioned for the holiday shopping season. As a result, Kahn said the company should produce a fourth-quarter operating profit before interest, taxes, depreciation and amortization.
Additionally, as reported in October, Delia’s has retained Peter J. Solomon Co.— which advised Lands’ End in its $1.9 billion sale to Sears Roebuck & Co. — to "pursue strategic relationships." Kahn said Delia’s hopes to announce a decision in this regard by fiscal yearend.Overall, for the first nine months of the year, Delia’s suffered a net loss of $6.6 million, or 14 cents a diluted share. That compares favorably with last year’s loss of $22.4 million, or 57 cents. Excluding special items and a change in accounting principle in both periods, this year’s loss would have been a more drastic $22 million, or 48 cents, versus $21.6 million, or 55 cents, a year ago.
Sales for the period slumped 7.2 percent to $87.8 million from $94.7 million.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews