Attached files
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| 8-K - FORM 8-K - dELiAs, Inc. | d468299d8k.htm |
 Exhibit 99.1 |
 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
except
as
required
by
law,
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
28,
2012,
and
our
Form
10-Q
for
the
fiscal
quarter
ended
October
27,
2012,
as
filed
with
the
Securities
and
Exchange
Commission.
Disclaimer
2 |
 dELiA*s
Overview |
 Company
Overview Multi-channel retail company comprised of two lifestyle brands primarily
marketing to teen girls and young women
Retail Segment accounts for approximately 57% of sales
o
106 mall-based dELiA*s stores in 33 states averaging 3,800 sq. ft.
o
Primarily selling tops, bottoms, dresses and accessories
Direct Segment accounts for approximately 43% of sales
o
Growing Direct to Consumer business consists of dELiA*s and Alloy catalog and
e-commerce
o
dELiA*s:
•
Expanded product offering includes shoes, swimwear, outerwear and extended sizes
•
Growing 12 month buyer file, with significant catalog circulation of 20.0 million in
2012 o
Alloy:
•
Target customer is an older teen to young, contemporary woman
•
Offers branded apparel, dresses, accessories, swimwear, footwear
and outerwear
•
Highly penetrated in denim through extended sizes/inseams offering
•
Catalog circulation of 16.5 million in 2012
4 |
 The dELiA*s
Target Customer Young teen, transitioning to “young adult”
o
15/16 year old high school girl is sweet spot
The dELiA*s girl is a girly-girl; she’s playful, positive
and always present
o
Considers herself pretty, not sexy
o
Is in the know about what’s cool now
o
Loves social media and is technology savvy
Primarily suburban from a broad demographic
spectrum
Independent shopping style, but most still using
parents’
credit card
5
She is celebrity influenced with a feminine, casual, on-trend style.
|
 The dELiA*s Brand
Concept 6
Serve as her best fashion friend; keep her in the fashion loop
Ignite her imagination with great outfitting ideas
Provide a look to fit every adventure and special occasion
Help her to bring her unique twist to any trend, while taking style cues from
celebrities, magazines, bloggers and friends
Everything we create should inspire her
She’s creative
She’s inspired
She’s ready |
 Hybrid, fast
fashion/vertical model o
Provide frequent flow of new, trend-right merchandise
o
Shift mix to fashion merchandise/less emphasis on key
items
Be the destination for all of her outfitting needs
o
Trend –right assortment of tops, fashion bottoms and
accessories
o
Great fitting jeans in the newest washes, colors, prints
and dominant in graphic tees (in touch with what’s
current as evidenced by success of One Direction tees)
o
“Must Have Dress”
for her special event
o
Fashion selection for every holiday
Merchants have a clear brand vision for the dELiA*s
girl that is utilized as the filter for all product
selection
dELiA*s
Merchandising Strategy
7
Deliver girly-girl fashion that captures “the look”
she wants |
 In-house
product development team coordinates scheduling, cost negotiation and fabric on key
programs
Flexible vendor model facilitates fast fashion and
test capabilities
Procure product through vendor partners and
domestic importers
Improved
sourcing on key items to reduce costs
Shorter lead times -
currently have the ability to
replenish most merchandise within 60 days, with
some as quickly as two weeks
Sourcing Supports Merchandising Strategy
8
Increased chase supported by sourcing model and web/in-store testing
|
 Pricing and
Promotions Target promotional buys around key events in
her life
o
Promotions planned upfront, not reactionary
o
Support with marketing strategy in catalog,
online and in store
Continue to fine tune pricing strategy
o
Ensure non-dELiA*s branded product is priced
right
Opportunity to offer better opening price
points on select items while improving
merchandise margin
9 |
 Marketing
Initiatives Continue utilization of dELiA*s catalog to drive traffic to stores and
web o
Circulate catalogs to retail buyers
o
Redirect unprofitable circulation spend to web based marketing initiatives
Enhance email campaigns through customized messaging, and maximize
search & affiliate programs
Use
targeted
social
media
to
reach
out
through
the
channels
that
she
uses
daily to communicate with friends
o
Facebook (680K+ friends, up 150% vs LY): Keep our girl informed
of what’s
going on with our brand, including cute new outfits, promotions,
trends, and
contests
10
Create
results
driven,
integrated
cross
channel
campaigns
fed
by
intelligent,
relevant and captivating content |
 dELiA*s
E-Commerce Platform Re-launched e-commerce platform
for delias.com in September with
new look and site features
o
New Customer reviews
o
Greater ability to schedule creative
& promotions (i.e. Flash Sales)
Results have been positive thus far
o
Cart conversion improved by 6%
versus prior trends
o
Flash sale emails were top
performers this holiday season
o
dELiA*s mobile generated 4% of
dELiA*s direct Nov/Dec sales versus
1.5% in 2012
New Alloy e-commerce platform
and mobile site scheduled to launch
in January 2013
11
Establish dELiA*s website as her Home Page |
 Financial
Overview |
 YTD Results
Through Q3 13
Retail:
o
Three consecutive quarters of positive comparable store
sales and improving gross margins
Direct:
o
Q3 YTD net sales increase of 2.8% YoY
Double digit traffic increase in stores and web
Increased conversion in stores and web
Double-digit increase in the dELiA*s 12-month buyer file
190 bps of leverage in SG&A
Completed transition to outsourced contact center and
upgrade of order management system
Occupancy cost reductions in line with expectations
Note: YTD as of 10/27/12 |
 35.0%
33.3%
31.5%
31.1%
33.5%
2009
2010
2011
YTD 2011*
YTD 2012*
$118.5
$122.4
$123.2
$89.6
$92.8
$105.4
$98.3
$93.9
$62.0
$63.7
$223.9
$220.7
$217.2
$151.6
$156.5
2009
2010
2011
YTD 2011*
YTD 2012*
Retail
Direct
Select Historical Performance Metrics
Net Sales –
Channel
Gross Margin
14
($ in millions)
Comparable Store Sales
-5.9%
-4.1%
0.1%
1.6%
7.3%
2009
2010
2011
YTD 2011*
YTD 2012*
*Note: YTD as of the end of the third fiscal quarter |
 Inventory
Position Inventory Turnover
YoY Inventory Change
Disciplined inventory management
contributing to improved financial
results
3Q12 average inventory per store
down YoY
Expect year-end average inventory
per store to be down mid single
digits and direct segment year-end
average inventory to be down low
single digits vs. LY
4.0x
3.6x
3.9x
4.9x
4.6x
3.8x
3.8x
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
Note: Retail inventory change represents average per store
1.0%
1.0%
7.9%
-7.4%
-5.1%
-2.1%
-11.2%
-10.1%
-7.4%
-5.9%
-5.1%
-3.4%
-1.1%
2.6%
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
Retail
Direct
15 |
 Investment
Highlights Well-established multi-channel, multi-brand retailer marketing to
teens and young women
Driving improved store productivity through restructured merchandising and
marketing approach and enhanced selling techniques
Potential for store expansion and improved four-wall store economics
E-commerce growth potential with new website driving increased productivity and
conversion
Turnaround story with significant upside to EBITDA
16 |