Heads up, Delia's(DLIA) NEWS AT THE CLOSE...mentioned on CNBC after the close:
(This stock was 30 BEFORE they had any internet presence...now its 13 and they get 20 million hits a month and that will increase for the holidays, oh yeah, and they MAKE money!)
biz.yahoo.com
Wednesday December 9, 3:57 pm Eastern Time
dELIA*Splans technology to reap Web riches
By Denise Duclaux
NEW YORK, Dec 9 (Reuters) - Teenage clothing retailer and direct marketer dELIA*s
Inc. shares jumped two points on Wednesday to 13-1/4 after it said it may spinoff its revamped Internet sites, which target
young shoppers, in an initial public offering.
''We are seeing a larger and larger percentage of total catalog sales made by online activity,'' said Stephen Kahn, chairman and
chief executive of the New York-based company, which operates an array of teen-oriented sites.
Kahn, who noted it was ''very likely'' dELIA*s would spin off its Internet business in an initial public offering, said that the
Internet is fueling 5 to 6 percent of total sales, up from 2 to 3 percent in June. Kahn added that he has watched Web sales
shoot up to 9 to 10 percent on busy shopping days.
dELIA*s plans to bolster its online community, gurl.com,( gurl.com ) with buddy listings, which tell teen surfers if their friends are browsing
the site at the same time; online messaging, which allows young visitors to message their friends on the site in real time; and
customized home pages, which tailors Web pages to teens' fancies.
''Hopefully, we can take the technology one step further so that they can see what other kids are buying,'' Kahn said, adding
that the teens would have to authorize the release of that information.
Kahn said that dELIA*s plans to announce in upcoming weeks an affiliate program, which would give companies that send
traffic to dELIA*s sites a percentage of the resulting sales.
dELIA*s is mulling the possibility of shooting off customized catalogs through broadcast e-mail, according to Kahn. In addition,
the company is exploring the opportunities behind collaborative filtering, the ability to identify online customers and predict their
desired purchases.
Kahn said that the company will pump up its online presence by leveraging its extensive database, which houses 10 million
names and 5 million buyers. He added that the company will also rely on its catalog circulation, which weighs in at 50 million
annually, to promote its Web sites.
''We already have an enormous amount of transactional history and we have additional demographic information,'' he said.
''We know how old they are and, in many cases, we know what schools they go to. We know what they like to purchase, and
when they like to purchase it.''
The company posted on Wednesday net income of $747,000, or $.05 per share, on net sales of $40.8 million for its third
quarter ended Oct. 31. dELIA*s reported net income of $1.6 million, or $.12 per share, on net sales of $31.4 million for the
same period last year.
Despite the earnings drop, Hambrecht & Quist started the company with a buy rating, explaining that ''brand leverage and
cross-channel promotional opportunities will drive both revenues and operating leverage opportunities.'' Analyst Genni C.
Combes said that the company's online revenues would likely triple in 1999.
Catalog consultant Maxwell Sroge, president of Maxwell Sroge Co., also predicts a bright future for dELIA*s' Internet
business: ''There's no question that the Internet is a growth area and that it appeals to young people. I think it's a very good
move for the company.'' |
