Alloy Net Loss Widens
New York-based Alloy (Nasdaq: ALOY),a multichannel merchant/marketing services provider, posted a net loss of $98.1 million for the year ended Jan. 31. The previous year the company had lost $75.2 million.
Total revenue nonetheless rose 8% for the year, to $402.5 million. Merchandise revenue—consisting of sales from the company’s Delia’s, Dan’s Competition, CCS, and Alloy catalogs, Websites, rose 17%, to $218.2 million. The increase was despite a 3% dip in fourth-quarter revenue, to $76.2 million, which the company said was due to planned circulation cuts and the closing of poorly performing stores.
The Alloy and Delia’s brands sell apparel and home accessories to teen girls; Dan’s Competition and CCS specialize in boys’ apparel and extreme-sports gear. In a release, Alloy said it is analyzing “strategic alternatives” for its merchandising business and hopes to provide specifics within four to six weeks.
Mattel Calls First-Quarter Results “Disappointing”
Following a strong holiday season, El Segundo, CA-based Mattel (NYSE: MAT) termed its first quarter “disappointing.” For the three months ended March 31, sales were $783.1 million, up just slightly from $780.9 million the previous first quarter. What’s more, net income declined 27%, to $6.5 million from $9.0 million a year earlier.
On the bright side, first-quarter gross sales for the American Girl Brands business unit, which sells the American Girl dolls and books via catalog, the Web, and two megastores, rose 25%, to $67.6 million. The company credited the increase to the January launch of a new American Girl Today doll and strong retail performance.