NEW YORK — Alloy Inc. fell into the red in the third quarter as costs from its Delia’s acquisition more than offset a double-digit benefit to revenues.
For the three months ended Oct. 31, the New York-based Gen-Y multiplatform marketer recorded a net loss of $6.8 million, or 17 cents, versus last year’s profits of $11.6 million, or 28 cents. Including a preferred stock dividend payment, but excluding an allowance for a net deferred tax asset, the net loss attributable to common shareholders was a narrower $2 million, or 5 cents.
Net revenues for the period gained 13.4 percent to $105.8 million from $93.2 million a year ago, as top-line contributions from Delia’s, which was acquired in October, more than offset declines at the Alloy catalogue business.
A large increase in costs, mostly due to the acquisition, pushed the company to a loss, however, as total operating expenses shot up 1,430 basis points to 50.7 percent of net revenues. Contributing to the spike was an 860 basis point expansion in selling and marketing expenses, as well as a 430 basis point rise in general and administrative overhead, among other factors.
“We have made recent senior management additions throughout the business that we expect to drive improved future financial performance,” said chief executive officer Matt Diamond in a statement. “Our excellent merchandise management team will be focused on realizing the synergies of the combined Alloy and Delia’s businesses, while capitalizing on the large database and recognized brands we own.”
With that, Alloy forecast a fourth-quarter loss attributable to common shareholders of 9 to 14 cents a share on net revenues of $115 million to $120 million.
Overall, for the first nine months of the fiscal year, Alloy reported a net loss of $7.5 million, or 22 cents, versus last year’s earnings of $15.2 million, or 34 cents. Including the cost of a preferred stock dividend and attendant accretion in both years, this period’s net loss attributable to common stockholders was $9.1 million against prior-year income of $13.6 million, while earnings per share were not affected. Revenues expanded 30.7 percent to $255.7 million from $195.6 million.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)