Delia's Net Income Falls

Delia’s Inc. posted net income of $6 million for the fourth quarter, a decrease from $6.8 million in the prior year.

The direct marketer and retailer reported revenue of $92.8 million for the quarter ended Feb. 2, a 3.8% increase over $89.3 million last year.

The New York company posted direct sales of $61 million for the quarter compared to $60.8 million in the prior year.

That segment’s gross profit margin was 46% of sales, a drop from 47.5% last year.

Management attributed this in part to a higher proportion of clearance versus full price sales in its Alloy catalog as well as higher outbound freight costs.

Overall, selling costs in the direct segment decreased, said the company. This was partly due to savings in catalog costs due to circulation cuts and production cost savings. These savings more than offset the retail segment’s increase in selling, general and administrative expenses as a percentage of sales.

“On the direct side of our business, quarterly sales were up, notwithstanding our planned circulation cuts and last year’s extra week,” said CEO Robert Bernard, in a statement. “We believe the investments made in 2007 in developing our team and our brands position us for progress towards our 2008 goal of returning to profitable growth.”