Delia’s seeks CFO
Omnichannel retail company Delia’s, which markets apparel, accessories and footwear to teenage girls, is looking for a new CFO. Current financial chief David Dick has resigned and will remain with the company through Aug. 1.
“I want to thank Dave for his hard work and dedication to Delia’s throughout the last six years,” said CEO Tracy Gardner. “He was actively involved in helping the company navigate a number of challenges and was instrumental in securing recent financing that is central to the execution of Delia’s’ strategy going forward. On behalf of the entire company, I wish him well in his future endeavors.”
Dick’s departure coincided with the company’s first-quarter results, which continued their downward trend. Total revenues decreased 26.3% to $25.9 million from $35.2 million in the first quarter of fiscal 2013. Comparable sales, including comparable store sales and direct-to-consumer sales, fell 24.7%, primarily driven by reduced website and mall traffic. In addition, catalog circulation for the quarter decreased 15.2% compared to the prior year quarter predominantly due to a reduction in unprofitable circulation.
“At this early stage of our turnaround, we are encouraged by our first quarter progress in what continues to be a challenging macro retail environment. While our total revenues decreased 26% in the first quarter, our comparable store performance was down 21% and sequentially improved each month of the quarter,” said Gardner. “Our merchandise margin rates, inclusive of obsolescence, were rebuilt to the highest level we have seen in the last six quarters as we delivered merchandise margin dollars that were only down 13% on a comparable store basis. This improvement in merchandise margin levels is an important first step that we would expect to see at this point in our turnaround.”
Gardner also emphasized that the company achieved its targeted first quarter reductions in inventory levels and operating expenses.
“Our team has made tremendous progress in developing a product assortment that appeals to our girl's fashion sense and her desire for great value. We are seeing our girl respond to the customer engagement strategies and enhanced store shopping experience that were rolled out in the first quarter. We are optimistic that the sequential improvements we have seen in the first quarter will continue forward while we remain focused on transforming Delia’s into a customer-centric teen brand that enables her to express her individual style. I want to thank our entire headquarters, distribution center and store teams for their hard work, passion and dedication to helping Delia’s reach its potential," she added.
The company relocated one store and closed two during the quarter, ending the period with 99 stores.