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dELİA*s AŞ Message Board

  • cantfigureitout4thelifeofme cantfigureitout4thelifeofme Jul 15, 2014 11:38 AM Flag

    Back in the .60's, Where did all the pumpers go

    still waiting for the great news from Tracy....

    Sentiment: Strong Sell

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    • Come one now... don't forget the "turnaround" will take time and all the losses are from "Legacy" inventory.

      They have sales of about $25M - $30M a quarter and lose over $10M on average. To make this company profitable they need to increase sales and completely slash their SGA cost.

      They are losing sales (and fast) probably because the product doesn't attract the target customer. Her "all star" team thinks they are designing for J Crew still. Costs seem to be increasing.

      Not sure what good news anyone expects. Someone please help me understand any optimism here?

      Sentiment: Strong Buy

      • 2 Replies to smay72
      • Not sure if this can be fixed it's been bad for so long. The fact that the board gave Tracey a bonus after 1 year without seeing any progress concerns me. After all she still hasn't been able meet last year's dismal numbers and there is no legacy goods to blame it on and they closed the bad stores. I think the board is not responsive they allow failure to be rewarded even Walter got bonuses for losing money all those years. The history here is after 18 months you get replaced and another team gets to apply their image, obviously up to now not the true Delia's image.
        The most recent catalog looks more on track merchandise and model wise so maybe there is some hope, The problem is cash they burn through so much cash. Overhead is still too high and average sale price needs to grow. For the turn around to be for real I expect Q2 to have increased comps and lower SGA.

        Sentiment: Sell

      • I don't know why above shows my sentiment as buy. I do not see a successful turnaround story here.

        Sentiment: Strong Sell