Q4 Write-Down Hurts Results at Alloy
The Generation Y marketer stated that the write-down occurred exclusively in its direct marketing segment and resulted from its annual valuation review as of Dec. 31, 2003.
Total revenue for the fourth quarter was up 12 percent to $116.3 million compared with fourth-quarter 2002. Fiscal fourth quarter net merchandise revenue of $78.4 million improved 23 percent. The increase resulted from the acquisition of Delia's Corp., "which offset an overall decline in revenues for Alloy's catalog titles," the company said in a statement.
Operating expenses totaled $132.7 million in the quarter compared with $46.5 million for fourth-quarter 2002. Excluding the impact of goodwill and other asset write-downs and restructuring charges, operating expenses increased to $61.9 million from $43.9 million. The company cited the expenses of the acquired Delia's, among other factors, for the increase.
Total revenue for the year ended Jan. 31 increased 24 percent to $371.9 million compared with the 2002 fiscal year. Net merchandise revenue for the year was $186.9 million, up 12 percent. Operating expenses totaled $258.7 million, nearly double the $134.2 million in 2002.
The net loss for fiscal 2003 reached $85.7 million, compared with net income of $21.2 million in fiscal 2002. Excluding the fourth-quarter write-down, Alloy's net loss for fiscal 2003 would have been $14.9 million.