December 11, 1998

Delia's Details Online Plans

Teen catalog Delia's, New York, announced last week it intends to use its existing resources and form new business relationships to drive traffic to its six Web sites. CEO Stephen Kahn said a spinoff of its five online catalog sites and community site (www.gurl.com) in an initial public offering is a possibility. For now, Delia's intends to leverage its database of 5.9 million catalog buyers and more than 10 million names to promote the sites. Other Internet initiatives being considered include development of an affiliate program that would award companies a sales cut for driving traffic to Delia's sites, customized catalogs by e-mail and collaborative filtering. Sales for the third quarter ended Oct. 31 were up 30.2 percent to $40.8 million, but net income dropped by more than half to $747,000 or 5 cents a share. For the first nine months of the year, sales were up 40.4 percent to $98.5 million and net income was up 13 percent to $ 2.6 million or 18 cents a share.
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