Financial Reports: Alloy, Coldwater Creek, Chico’s

New York-based multichannel marketer Alloy(NasdaqNM: ALOY) posted a $321,000 net loss for the quarter ended July 31, compared with net income gain of $538,000 last year due to higher operating expenses, and expenses from its July acquisition of rival teen marketer Delia’s.

Total revenue for the quarter increased 55%, to $80.5 million, compared with $52.0 million last year. Second quarter net merchandise revenue fell 5%, to $30.0 million compared with $31.5 million last year due to a planned in catalog circulation. Alloy says it reduced the number of catalogs sent to prospects and nonbuyers inside its database.

The increase resulted from a larger advertising sales force, a broader client base, and a wider range of media services offered than in the last fiscal year, due to a combination of internal development and strategic acquisitions, together with the addition of revenues from the operations of OCM, a marketing/advertising agency that Alloy acquired at the beginning of the second quarter of fiscal 2003.

In the company release, Alloy also provided third quarter guidance. Assuming the company takes majority ownership of rival Delia’s in early September, CEO Matt Diamond said in a statement that Alloy expects merchandise revenue in the range of $50 million-$55 million, and sponsorship revenue range of $66 million to $69 million. Alloy expects earnings before interest, taxes, depreciation, and amortization (EBITDA) to range from $9 million to $12 million.

For the full fiscal year, Alloy is forecasting merchandise revenue of $210 million to $220 million, sponsorship and other revenue of $200 million to $210 million, and adjusted EBITDA of $25 million to $30 million.

For the quarter ended Aug. 2, women’s apparel marketer Coldwater Creek (Nasdaq: CWTR) posted less of a net loss of $1.4 million, compared with a net loss of $2.1 million last year. Net sales for the Sandpoint, ID-based cataloger/retailer increased 5%, to $96.7 million from $92.1 million last year.

Net sales from the direct segment, which includes catalog and e-commerce, decreased 12%, to $56.1 million, compared with $64.0 million last year. Catalog net sales for the second quarter decreased 9%, to $32.4 million, from $35.8 million last year. E-commerce net sales decreased 16% to $23.6 million from $28.2 million last year.

Coldwater Creek is relying less on its direct business. Net sales from the segment comprised 58% of the company’s total net sales in the second quarter, compared with 69% a year ago. Catalog net sales represented 34% of total net sales in second quarter, compared with 39% last year, while e-commerce net sales represented 25% of total net sales for the quarter, compared with 31% last year.

Fort Myers, FL-based cataloger/retailer Chico’s FAS (NYSE: CHS) continues to crank out strong sales and earnings. Net sales for the private-label women’s clothing and accessories marketer increased a record 39%—to $173.4 million—for the quarter ended Aug. 2. Last year, net sales totaled $125.1 million for the quarter. Net income rose 49% to $24.5 million, compared with net income of $16.4 million last year. Catalog and Internet sales increased 37%, to $4.8 million, compared with $3.5 million a year ago. Comparable store sales increased 15%.

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