Robust sales gains during the back-to-school season allowed Delia’s Inc. to overcome the hostile retail environment and post a third-quarter profit.
For the quarter ended Nov. 1, the multichannel teen retailer recorded net income of $3.5 million, or 11 cents a diluted share, compared with a profit of $12,000, or zero cents a share, last year. The results for the quarter reflected the sale of the company’s CCS skateboard catalogue business on Nov. 5. Upon the close of the unit’s sale to Foot Locker Inc., Delia’s received $103.2 million in cash proceeds.
Net income from continuing operations was $941,000, or 3 cents a share, compared with a loss of $2.7 million, or 9 cents a share, a year ago. Revenues for the New York-based retailer rose 9.5 percent in the third quarter to $56.9 million from $52 million in 2007.
“We are very pleased with our improved performance for the third quarter and the b-t-s selling period, which, as we have said, we viewed as an important inflection point for our business,” said chief executive officer Robert Bernard, who added that the firm’s retail stores had posted increases in same-store sales for three consecutive quarters. “We believe that this positive momentum is largely attributable to our improved merchandise assortment and our careful edit of the Delia’s brand.”
The company, which also has direct-to-consumer operations, said revenues for the retail segment increased 19.4 percent to $32.6 million in the quarter, while direct revenues fell 1.4 percent to $24.4 million.
For the first three quarters, Delia’s reduced its loss to $5.4 million, or 17 cents a share, from a loss of $8.3 million, or 27 cents a share, last year. Sales for the nine months rose 10.4 percent to $148.4 million from $134.4 million a year ago.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)