$DLIA Delia's Jan 2013 Corporate Investor ICR Presentation Slides Deck PPT PDF.pdf

7/29/2019 $DLIA Delia's Jan 2013 Corporate Investor ICR Presentation Slides Deck PPT PDF.pdf

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Disclaimer

This presentation contains forwardlooking statements. Forwardlooking 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 offuture performance, and except as required by law, we undertake no obligation to publicly

update any forwardlooking statements whether as a result of new information, future events

or otherwise. Actual events and results may differ from those expressed in any forwardlooking

statements due to a number of factors. Factors that could cause our actual performance, future

results and actions to differ materially from any forwardlooking statements include, but are not

limited to, those discussed in risk factors within our Form 10K for the fiscal year ended January

28, 2012, an our Form 10Q or t e isca quarter en e Octo er 27, 2012, as i e wit t e

Securities and Exchange Commission.

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CompanyOverview

u t

c anne

reta

companycompr se

o

two

esty e

ran s

pr mar y

marketingtoteengirlsandyoungwomen

o 106mall

based

dELiA*s

stores

in

33

states

averaging

3,800

sq.

ft.

o Primarilysellingtops,bottoms,dressesandaccessories

DirectSegmentaccountsforapproximately43%ofsales

o GrowingDirecttoConsumerbusinessconsistsofdELiA*sandAlloycatalogand

ecommerce

o dELiA*s:

Expandedproductofferingincludesshoes,swimwear,outerwearandextendedsizes

Growing12monthbuyerfile,withsignificantcatalogcirculationof20.0millionin2012

Targetcustomerisanolderteentoyoung,contemporarywoman

Offersbrandedapparel,dresses,accessories,swimwear,footwearandouterwear

Highlypenetratedindenimthroughextendedsizes/inseamsoffering

.

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ThedELiA*sTargetCustomer

Youngteen,transitioningtoyoungadult

o 15/16yearold highschoolgirlissweetspot

ThedELiA*sgirlisagirlygirl;shesplayful,positive

andalways

present

o Considersherselfpretty,notsexy

o s n e nowa ou w a scoo now

o Lovessocialmediaandistechnologysavvy

spectrum

Inde endent sho in st le but most still usin

parentscredit

card

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ThedELiA*sBrandConcept

Shescreative

Shesinspired

Shesready

Serveasherbestfashionfriend;keepherinthefashionloop

Igniteherimaginationwithgreatoutfittingideas

Providealooktofiteveryadventureandspecialoccasion

Helphertobringheruniquetwisttoanytrend,whiletakingstylecuesfrom

celebrities,magazines,

bloggers

and

friends

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dELiA*s MerchandisingStrategy

Hybrid,fastfashion/verticalmodelo Providefrequentflowofnew,trendrightmerchandiseo Shiftmixtofashionmerchandise/lessemphasisonkey

items

Bethe

destination

for

all

of

her

outfitting

needs

o Trendrightassortmentoftops,fashionbottomsand

o Greatfittingjeansinthenewestwashes,colors,printsanddominantingraphictees(intouchwithwhats

currentas

evidenced

by

success

of

One

Direction

tees)

o us ave ress or erspec a eveno Fashionselectionforeveryholiday

MerchantshaveaclearbrandvisionforthedELiA*s

girlthat

is

utilized

as

the

filter

for

all

product

selection

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SourcingSupportsMerchandisingStrategy

Inhouseproductdevelopmentteamcoordinates

Increasedchasesupportedbysourcingmodelandweb/instoretesting

,

programs

Flexiblevendormodelfacilitatesfastfashionand

testcapabilities

Procureproduct

through

vendor

partners

and

domesticimporters

Improved sourcingonkeyitemstoreducecosts

Shorterleadtimescurrentlyhavetheabilityto

replenishmostmerchandisewithin60days,with

someasquicklyastwoweeks

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PricingandPromotions

Targetpromotionalbuysaroundkeyeventsin

herlife

o Promotionsplannedupfront,notreactionary

o Supportwithmarketingstrategyincatalog,

onlineand

in

store

o EnsurenondELiA*sbrandedproductispriced

right

Opportunitytoofferbetteropeningprice

pointsonselectitemswhileimproving

merchandisemargin

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MarketingInitiatives

ContinueutilizationofdELiA*scatalogtodrivetraffictostoresandweb

,

,

relevantandcaptivatingcontent

o Circulatecatalogstoretailbuyers

o Redirectunprofitable

circulation

spend

to

web

based

marketing

initiatives

Enhanceemailcampaignsthroughcustomizedmessaging,andmaximize

search&affiliateprograms

Usetargeted

social

media

to

reach

out

through

the

channels

that

she

uses

dailytocommunicatewithfriends

o Facebook (680K+friends,up150%vs LY): Keepourgirlinformedofwhats

goingonwithourbrand,includingcutenewoutfits,promotions,trends,and

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dELiA*sECommercePlatform

*

Relaunchedecommerceplatform

fordelias.cominSeptemberwith

new oo an s e ea ures

o NewCustomer

reviews

o Greaterabilitytoschedulecreative&promotions(i.e.FlashSales)

Resultshavebeenpositivethusfaro Cartconversionimprovedby6%

versusprior

trends

o Flashsaleemailswereto performersthisholidayseason

o dELiA*smobilegenerated4%ofdELiA*sdirectNov/Decsalesversus1.5%in2012

NewAlloyecommerceplatformand

mobilesitescheduledtolaunchin

January2013

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YTDResultsThroughQ3

Retail:

o Threeconsecutivequarters ofpositivecomparablestore

salesandimprovinggrossmargins

Direct:

o Q3YTD

net

sales

increase

of

2.8%

YoY

Doubledigittrafficincreaseinstoresandweb

ncrease convers on nstoresan we

DoubledigitincreaseinthedELiA*s12monthbuyerfile

190bps

of

leverage

in

SG&A

omp e e rans on oou source con ac cen eran

upgradeofordermanagementsystem

Occupancycostreductionsinlinewithexpectations

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Note: YTDasof10/27/12


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SelectHistoricalPerformanceMetrics

$223.9 $220.7 $217.2

NetSales Channel($inmillions)

ComparableStoreSales

$118.5 $122.4 $123.2$89.6 $92.8

$105.4 $98.3 $93.9

$62.0 $63.7

$151.6 156.5

2009 2010 2011 YTD2 01 1* YTD2012*

5.9% 4.1%

0.1%1.6%

7.3%

Retail Direct 2009 2010 2011 YTD2011* YTD2012*

ross arg n

35.0% 33.3% 31.5% 31.1% 33.5%

2009 2010 2011 YTD2011* YTD2012*

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*Note: YTDasoftheendofthethirdfiscalquarter


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InventoryPosition

InventoryTurnoverDisciplinedinventorymanagement

contributingtoimprovedfinancial

results 4.0x 3.9x4.9x

4.6x

3.8x 3.8x

3Q12average

inventory

per

store

downYoY

.

YoYInventoryChangeExpectyearendaverageinventory

perstore

to

be

down

mid

single

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

igitsan irectsegmentyearen

averageinventorytobedownlow

singledigitsvs.LY

1.0% 1.0%

.

5.1%

2.1%

5.9% 5.1%

3.4%

1.1%

2.6%

.

11.2%

10.1%

.

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Retail Direct

Note: Retailinventorychangerepresentsaverageperstore

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InvestmentHighlights

Wellestablishedmultichannel,multibrandretailermarketingtoteensandyoung

women

Drivingimprovedstoreproductivitythroughrestructuredmerchandisingand

marketingapproach

and

enhanced

selling

techniques

otent a orstoreexpans onan mprove ourwa storeeconom cs

Ecommerce

growth

potential

with

new

website

driving

increased

productivity

and

TurnaroundstorywithsignificantupsidetoEBITDA

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$DLIA Delia's Jan 2013 Corporate Investor ICR Presentation Slides Deck PPT PDF.pdf

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