Darrell: dang, so this what it meant..oh well we'll get over it sooner or later I hope.
Technology News
Thu, 15 Apr 1999, 10:23am EDT
Delia's Expects 1st-Qtr Loss From Slow Sales at Screeem!
New York, April 15 (Bloomberg) -- Delia's Inc., a clothing retailer that caters mostly to teenagers, said slow sales at its Screeem! chain will result in an operating loss in the fiscal first quarter and could drag down earnings for the year.
Delia's shares fell 23 percent, or 7 1/8, to 23 3/4 in early trading after the warning. The warning came as Delia's, which owns most of Internet retailer iTurf Inc., announced a 55 percent increase in fiscal fourth-quarter earnings. ITurf shares fell 12 1/2 to 46.
The company said it expects a first-quarter loss from operations of about 10 to 14 cents a share. At the same time, it said it expects to record a gain of $2 a share from last week's initial public offering of iTurf.
Delia's was expected to earn 6 cents a share, the average estimate of six analysts polled by First Call Corp. It earned 15 cents a share in last year's quarter.
New York-based Delia's blamed poor sales of its spring fashions in the young men's line at Screeem! Because of that, Delia's said it will have to reconsider its profit expectations for the full year, and look at its operating and strategic alternatives. The company is expected to earn 60 a share for the fiscal year ending next January, according to First Call.
Delia's owns about 75 percent of iTurf, an online company that sells clothes and provides chat rooms, targeting 10- to 24-year-olds.
ITurf shares almost tripled on Friday in their first day of trading, giving iTurf a market value of almost $1 billion. ITurf sold a 25 percent stake, or 4.2 million shares, at $22 each. The shares soared to 57 7/16 on Friday.
Fourth-quarter earnings rose to $3.2 million, or 21 cents a share, from $2.1 million, or 15 cents, in the year-earlier quarter. That matched the average estimate of six analysts polled by First Call.
Sales rose 40 percent to $59.9 million from $42.9 million. |
