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dELIA*s Inc. Reports Operating Results (10-Q)

September 09, 2010 | About:
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10qk

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dELIA*s Inc. (DLIA) filed Quarterly Report for the period ended 2010-07-31.

Delia*s Inc. has a market cap of $47.3 million; its shares were traded at around $1.51 with and P/S ratio of 0.2. DLIA is in the portfolios of Whitney Tilson of T2 Partners Management, LP, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.
This is the annual revenues and earnings per share of DLIA over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DLIA.


Highlight of Business Operations:

Direct Marketing SG&A. Direct marketing SG&A decreased to $9.8 million in the quarter ended July 31, 2010 from $10.8 million in the quarter ended August 1, 2009. As a percentage of related revenues, the direct marketing SG&A increased to 52.0% in the quarter ended July 31, 2010 from 49.1% in the quarter ended August 1, 2009. The reduction in dollars was driven by reduced catalog circulation. The increase in SG&A as a percentage of sales reflects the deleveraging of selling and overhead expenses.

Total Selling, General and Administrative. As a percentage of revenues, total selling, general and administrative expenses (SG&A) increased to 48.4% for the twenty-six weeks ended July 31, 2010 from 45.0% for the twenty-six weeks ended August 1, 2009. In total dollars, SG&A increased to $45.1 million in the twenty-six weeks ended July 31, 2010 from $44.0 million in the twenty-six weeks ended August 1, 2009. Included in the twenty-six weeks of fiscal 2010 is a pre-tax severance charge of $1.4 million. SG&A excluding the aforementioned severance charge was $43.7 million, or 46.9% of sales. The increase in SG&A as a percentage of sales reflects the deleveraging of selling, overhead and depreciation expenses.

Direct Marketing SG&A. Direct marketing SG&A, which include a severance charge of $0.7 million, decreased to $21.6 million in the twenty-six weeks ended July 31, 2010 from $22.4 million in the twenty-six weeks ended August 1, 2009. As a percentage of related revenues, the direct marketing SG&A increased to 50.5% in the twenty-six weeks ended July 31, 2010 from 45.9% in the twenty-six weeks ended August 1, 2009. The reduction in dollars was driven by reduced catalog circulation. The increase in SG&A as a percentage of sales reflects the deleveraging of selling and overhead expenses.

Retail Store SG&A. Retail SG&A, which include a severance charge of $0.7 million, increased to $23.5 million in the twenty-six weeks ended July 31, 2010 from $21.6 million in the twenty-six weeks ended August 1, 2009. As a percentage of related revenues, retail SG&A increased to 46.7% in the twenty-six weeks ended July 31, 2010 from 44.1% for the twenty-six weeks ended August 1, 2009. The increase in SG&A as a percentage of sales reflects the deleveraging of selling, overhead and depreciation expenses.

Total Operating Loss. Our total operating loss was $16.9 million for the twenty-six weeks ended July 31, 2010 as compared to a loss of $12.2 million for the twenty-six weeks ended August 1, 2009. Included in the twenty-six weeks of fiscal 2010 is a pre-tax severance charge of $1.4 million. Our total operating loss for the twenty-six weeks ended July 31, 2010, adjusted to exclude the aforementioned severance charge, was $15.5 million.

dELiA*s, Inc. and certain of its wholly-owned subsidiaries were parties to the Restated Credit Facility with Wells Fargo which expired by its terms on June 26, 2009. The Restated Credit Facility was a secured revolving credit facility that the Company could draw upon for working capital and capital expenditure requirements and had an initial credit limit of $25 million, which was subsequently increased to $30 million. The Restated Credit Facility, as amended, allowed for letters of credit up to an aggregate amount of $15 million.

Read the The complete Report

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