Delia’s posts first quarterly profit since 1999

A year’s worth of divestitures sharply reduced net sales at teen apparel marketer Delia’s (Nasdaq: DLIA), but they also helped the company reduce its net loss. For the fiscal year ended Feb. 2, net sales were $143.7 million, down 33% from $215.1 million in sales the previous year. But at $22.1 million, Delia’s consolidated net loss for the year was nearly one-quarter of the $79.7 million it was for fiscal 2000. During the past year, Delia’s sold such noncore brands as Storybook Heirlooms and TSI Soccer.

What’s more, for the first time since 1999, Delia’s posted a quarterly profit. For the fourth quarter of fiscal 2001, the cataloger/retailer reported net income of $310,000, excluding a noncash settlement of a class-action lawsuit related to the company’s November 2000 acquisition of iTurf. For the previous fourth quarter, the New York-based company lost $17.8 million. The turnaround came despite a 36% drop in net sales, to $49.0 million from $76.4 million. In addition to the divestitures, the company blamed sporadic mail delays for some of the decline.

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