"We continue to believe that the new store format that we've developed will prove capable of excellent growth," Bernard said. Delia's did grow sales in the first quarter, and its loss of five cents per share ($1.2 million total) compared with a loss of 14 cents per share ($2.9 million) in the first quarter a year ago.
The company credited new store openings for the increase in its retail sales during the quarter. It opened four new store locations, ending the period with 61 stores and two outlets. Delia's has alrerady opened two new stores in the second quarter and expects to open six more locations this quarter, four in the third quarter and two more in the fourth quarter.
Total first quarter sales grew to $51.9 million, driven by revenue increases in both the company's retail stores and its direct segment, which includes catalog and Internet sales. Direct sales represent the larger of the two, totaling $37.1 million in the quarter, compared to $14.7 million in retail sales.
Despite the overall sales increase, the first quarter comparable store sales decreased 7.1%. The company blamed the decrease, in part, on a planned reduction in non-apparel merchandise. However, it said that a "larger and more relevant issue" was a fashion shift that occurred in apparel.
Bernard said that the company remains optimistic about returning to positive comparable store sales in the second half of the fiscal year. Delia's operates under the brands Delia's, Ally and CCS; it sells clothing, accessories, shoes, room furnishings and action sports equipment predominantly to teenage consumers through direct mail catalogs, web sites and the mall-based Delia'specialty stores.
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