Delia's looks to recover following losses in Q4

Delia’s is still in the early stages of its turnaround efforts, but losses in the fourth quarter prompted the multichannel retailer that caters to teenage girls to offer preliminary results.



The company said that headwinds which continue to pressure the retail industry hampered its progress in the quarter.



Total revenue decreased 34.2% to $35.4 million as compared to $53.7 million in the fourth quarter of fiscal 2012. Revenue from the retail segment decreased 33% to $22 million, including a comparable-store sales decrease of 26.9%. Revenue from the direct segment decreased 36% to $13.4 million.



Total net inventories were $19.6 million at year end compared to $24.8 million at the end of the prior year.



"We continued to make progress in executing on key initiatives that we believe will drive improved performance in our business longer term,” said CEO Tracy Gardner. “We significantly reduced inventory levels in underperforming legacy merchandise during one of the most challenging retail environments we have seen in several years. We also saw highly encouraging green shoots in the new spring merchandise that delivered toward the end of the quarter. While small wins thus far, we strongly believe that the steps we are taking to rejuvenate the business are putting Delia’s on the path to recovery. Our strengthened capital structure with the recent offering should provide the support necessary to execute on our long term plans.”



The company intends to release fourth quarter and full year fiscal 2013 financial results March 20.