Financial reports: Delia’s, Tiffany

Bottom Falls Out At Delia’s

Third-quarter sales at New York-based cataloger/retailer Delia’s increased 5.5%, to $71.2 million for the period ended Nov. 3, compared with $67.5 million for the same period last year. But net income nearly disappeared, checking in at a mere $12,000, compared to last year’s third-quarter net income of $3.3 million.

What happened? Company officials attributed the massive drop in net income to increased markdowns, higher retail occupancy costs as a percentage of sales, and reduced catalog circulation.

Sales for the direct segment — the catalogs and Websites of teen girls apparel brands Delia’s and Alloy and extreme-sports gear merchant CCS – rose 5.3%, to $43.9 million from $41.7 million for the same quarter last year.

Retail sales increased 5.8%, to $27.3 million from $25.8 million a year ago. Same-store sales increased 2%. But comparable-store sales tumbled more than 18%.

CEO Robert Bernard said in a release: “Following a strong start to the back-to-school season, sales trends softened in September and October as mall traffic slowed dramatically and warm weather negatively affected sales, forcing us to be more promotional. On the direct side of our business, sales were up, notwithstanding our planned circulation cuts.”

Net Income Way Up at Tiffany & Co.

Bolstered by higher international sales and the sale of its Tokyo flagship store, third-quarter profits for New York-based jewelry and giftware merchant Tiffany & Co. more than tripled. Its net income reached $98.9 million, up from $29.1 million last year.

For the period ended Oct. 31, Tiffany’s net sales rose 18%, to $627.3 million. Same-store sales increased a solid 8% in the U.S. and 10% internationally. Direct marketing sales increased 4%, to $31.3 million. U.S. retail sales rose 12%, to $302.6 million. International retail sales increased 22%, to $270.8 million.

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