In 2001 they executed well with the 70's / hippie style stuff. By '05, hippie stuff was on it's way out.. by 2007, 80's influences were big.. DLIA's went from trendy to just blah.
You can get the 12-19 market while picking up the 18-30..
Their brand is worthless, as evidenced by their willingness to hawk it selling ad space.
I'm suggesting they ditch the name, relaunch with a new line and go with either a distinct style, or embrace retro in a big way like http://www.modcloth.com has.
Blowing a few million on this now is still possible. If their game is to just wait for a macro recovery they're going to get crushed and just burn through the rest of their cash.
I like this stock because of the cash on hand. I'm hopeful that they realize they can't keep doing what they're doing today and will make a change. I keep coming back to the fact that they're selling ad space on their website though. Why the heck would they do this?? Their marketing folks need to go.
Thesis Fund urges Delia's to act on strategic alternatives now Thesis Fund Management, advisor to The Flexible Fund, has been in discussions with dELiA¹s board and sent them a letter dated June 15. An excerpt of the letter follows: We believe that to the right acquirer dELiA’s is worth five times, or more, our pro-forma estimate of contribution margin. That translates to an estimated value for the Company in excess of $150M or a share price closer to $5, approximately three times higher than its current valuation. Lastly, as evidenced by the endless string of transaction announcements and boards seeking strategic alternatives, the time to act is now. :theflyonthewall