Sales Down for Delia's, But Net Loss Declines
Sales were $49 million, down from $60.7 million a year earlier. The multichannel marketer of apparel, accesories and home furnishings to teen-age girls and young women said in a statement that the decrease "relates in part to sporadic mail delays that affected sales in the direct division."
Delia's reported net income of $310,000 for the quarter before accounting for a non-cash settlement of a class-action lawsuit, compared to a net loss of $17.8 million a year ago.
On a consolidated basis before accounting for the non-cash settlement, net sales during fiscal 2001 were $143.7 million, down from $215.1 million during fiscal 2000. The company's consolidated net loss for fiscal 2001 was $21.3 million, before an extraordinary item, and $22.1 million after the extraordinary item, compared to a net loss of $79.7 million last year.
The results do not include the impact of the previously announced settlement of the class-action lawsuit related to the acquisition of Delia's Inc. by iTurf Inc. in November 2000. The settlement fund will consist of 1 million shares of Class A stock, with a current settlement value of $7 million. The final settlement value will be determined by the end of April.