Delia’s Down in Q4, Up Slightly for 2009

Fourth-quarter sales at Delia’s decreased 1.4%, to $66.3 million for the three months ended Jan. 30. The cataloger/retailer’s net loss was $800,000, compared to a net loss of $900,000 for the fourth quarter last year.

Sales for the direct segment—the catalogs and Websites of teen girls’ apparel brands Delia’s and Alloy—fell 3.9%, to $32.0 million from $33.2 million. The company’s total retail sales increased 1.1%, to $34.3 million.

For the fiscal year, total sales at Delia’s increased 3.8%, to $223.9 million from $215.6 million. Net loss for fiscal 2009 was $10.4 million, compared to a net loss of $12.6 million in fiscal 2008.

Delia’s direct sales for the year rose 2.7%, to $105.3 million from $102.5 million. Sales for the retail segment grew 4.7%, to $118.4 million from $113.0 million.

CEO Robert Bernard said in a statement that fourth-quarter sales were in line with the New York-based company’s expectations. But he added that increased promotional activity failed to drive direct revenue for Delia’s.

“We expect lower direct segment sales, with higher margins, in the first half of the year due to significantly lower clearance inventory levels as compared to spring 2009,” Bernard said. “With the focus on improving sales productivity, we anticipate scaling back our store expansion plans for 2010 compared to 2009, limiting our capital expenditures and prudently reducing costs.”