Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - dELiAs, Inc. | d280392d8k.htm |
 ICR
XChange January 11, 2012
Exhibit 99.1 |
 DESCRIPTION OF DELIA*S HOLIDAY 2011 COMMERCIAL
During the entire commercial music is playing in the background.
The
commercial consists of various models wearing, displaying and showing
dELiA*s apparel and accessories during catalog photo shoots.
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 This
presentation
contains
forward-looking
statements.
Forward-looking
statements
are
based
on
current
expectations
and
projections
about
future
events
and
are
subject
to
risks,
uncertainties
and
assumptions
about
our
Company,
economic
and
market
sectors
and
the
industry
in
which
we
do
business,
among
other
things.
These
statements
are
not
guarantees
of
future
performance,
and
we
undertake
no
obligation
to
publicly
update
any
forward-looking
statements
whether
as
a
result
of
new
information,
future
events
or
otherwise.
Actual
events
and
results
may
differ
from
those
expressed
in
any
forward-
looking
statements
due
to
a
number
of
factors.
Factors
that
could
cause
our
actual
performance,
future
results
and
actions
to
differ
materially
from
any
forward-looking
statements
include,
but
are
not
limited
to,
those
discussed
in
risk
factors
within
our
Form
10-K
for
the
fiscal
year
ended
January
29,
2011,
and
our
Form
10-Q
for
the
fiscal
quarter
ended
October
29,
2011,
as
filed
with
the
Securities
and
Exchange
Commission.
Disclaimer
3 |
 Investment
Highlights Well-established multi-channel, multi-brand retailer serving teens
and young women's market
•
dELiA*s brand offers the trend focused teen girl differentiated
assortments from the competition
•
Alloy offers a wide selection of
juniors targeted name brands
Opportunity to drive significant store productivity through restructured
merchandising approach and enhanced selling techniques
Store expansion potential and improving store four-wall economics
E-commerce growth potential with new web site and merchandise
architecture changes driving increased productivity and conversion
Turnaround story with significant upside to EBITDA
4 |
 Where We Were
Vertical product development with long lead times
Extensive investment in key items
Fashion misses in key items and a disconnect with the customer led to
increased markdowns
High IMU with deep markdowns lowered merchandise margins
Unprofitable retail segment
5 |
 New Objectives
Align and strengthen the dELiA*s brand
across all 3 channels: Retail Stores,
Catalog and Website
Drive increased sales productivity
through improvements in each metric
of the sales equation
Accelerate web marketing techniques
and social media exposure
Evaluate and redirect overhead and
selling costs
Generate positive cash flow to fund
growth
6 |
 3-Pronged
Strategy 7 |
 Product
Merchandising 8
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 9
|
 Architecture
Sell the outfit with increased cc count offering
Increase web/store tests, with ability to react quickly through new sourcing model
and vendor structure
New
category mix
Now
Then
Consistent flow of merchandise
4 quarterly floorsets with updates
Less dependence on key items
70% of sales and inventory in 30 key items
Fashion buys 4 weeks of supply
Fashion buys 8 weeks of supply
10 |
 Product
Development Shift mix to
fashion merchandise/less
emphasis on key items
•
Drive UPTs
with focus on outfitting
New sourcing model enables faster “market to
customer”
product flow
•
Increase product testing and chase supported
by new sourcing model and flexible vendor
structure
Increase frequency of floor sets to 12 per year
•
With flow of new product every week
11
Focus on trend-right merchandise, more frequent flow of
new product and faster turns |
 Pricing and
Promotions 12
Achieve higher fashion sell-through at
planned price points
Plan promotional buys around key
events in her life
Promotions planned upfront not
reactionary
Support with marketing strategy
Maintain leaner inventory levels with
more frequent faster-turning deliveries
Better sourcing on key items to reduce
cost |
 Driving Sales
Productivity in All Channels 13
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 14
|
 In all channels
we see opportunities for significant improvement in all parts of
the selling equation
Strategies must drive improvement in all metrics of the sales equation
Sales Equation
15 |
 16
Strategies to Drive Traffic
Stores
Increase frequency of new
merchandise offerings
Enhance window displays and
visuals
Capitalize on catalog and email
Plan promotional events around
events in her life
Web
Increase frequency of new
merchandise offerings
New web front-end via partnership
with MarketLive
•
Enhance search capability
•
Enhance visual merchandising
technique
•
Enhance customer marketing abilities
Capitalize on Alloy Media and
Marketing to drive traffic
Align customer experience across dELiA*s retail stores and
delias.com |
 Conversion
17
Stores
Web
New merchandise more often
New pricing and promotional
model
More consistent merchandising
offering
More changes to visual
merchandising with emphasis on
outfitting
Addition of a runway to stores to
show and sell outfits
Grow accessory business
New merchandise more often
New pricing and promotional
model
New web site with best of breed
functionality by BTS 2012
•
Functionality to personalize
promotional offerings
Conversion has increased in stores and on web |
 Average
Order 18
Stores
Web
Drive UPT to 3 through more
outfitting and doubling the
accessory business
Increase top to bottom ratio from
current ratio to a minimum 3 to 1
New pricing and promotional
model
More frequent changes to visual
outfitting throughout the store
New functionality that supports
both up selling and outfit selling
New pricing and promotional
model
Catalog focus on outfit completion |
 Selling
Expenses Overhead
CapEx
19
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|
 20
|
 Selling
Expenses, Overhead, CapEx 21 |
 Financials
22
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 23
|
 Nine Months
Ended 2011 Income Statement 1) Third Quarter Fiscal 2010 operating income, net loss and
EPS adjusted to exclude a pretax non-cash goodwill impairment charge of $7.6
million related to the direct segment.
24
October 29, 2011
October 30, 2010
Net Revenues
151,560
$
153,784
$
Gross Profit
47,179
$
48,808
$
Operating Loss
(19,033)
$
(20,478)
$
Net Loss
(18,506)
$
(14,724)
$
EPS
(0.59)
$
(0.47)
$
For the Thirty-Nine Weeks Ended
dELiA*s, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited) |
 Third Quarter
2011 Balance Sheet Statement October 29, 2011
October 30, 2010
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
15,778
$
14,356
$
Inventories, net
41,655
$
41,838
$
Other current assets
7,350
$
24,750
$
Other Assets
52,576
$
59,464
$
TOTAL ASSETS
117,359
$
140,408
$
LIABILITIES AND STOCKHOLDERS' EQUITY
TOTAL LIABILITIES
51,250
$
56,274
$
TOTAL STOCKHOLDERS' EQUITY
66,109
$
84,134
$
dELiA*s, Inc.
BALANCE SHEETS
(in thousands)
(unaudited)
25 |
 Net Sales and
Comparable Store Sales Comparable Store Sales
Net Sales
26
YTD=First Nine Months Ended October 29, 2011 and October 30, 2010,
respectively |
 Gross Margin and
Operating Profit Gross Margin
1)
FY and YTD operating profit exclude Third Quarter Fiscal 2010 pretax non-cash
goodwill impairment charge of $7.6 million related to the direct segment
2)
YTD=First Nine Months Ended October 29, 2011 and October 30, 2010,
respectively 27
Operating Profit |
 2012 Financial
Goals Positive sales growth in both retail and direct
Improved margins resulting from merchandising and promotional
changes
Evaluate real estate portfolio, 70 stores up for renewal in next 3 years
Continued rationalization and reallocation of selling and overhead expenses
Positive EBITDA
Inventory growth rate below sales growth rate
28 |