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Shares of dELiA*s, Inc. (DLIA) Move Higher on Second Quarter Financial Results

dELiA*s, Inc. (NASD: DLIA), a direct marketing and retail company comprised of three lifestyle brands primarily targeting consumers between the ages of 12 and 19, recently reported its fiscal second quarter 2008 financial results ending August 2, 2008. The company’s shares surged on the news of a 10.8 percent year-over-year increase in revenue for the quarter.

Total revenue reached $58.1 million, up 10.8 percent from $52.4 million in the second quarter of fiscal 2007. The net loss for the second quarter of fiscal 2008 totaled $5.0 million, or $0.16 per diluted share, in line with the net loss of $5.1 million, or $0.16 per diluted share, during the second quarter of fiscal 2007. Revenue from the company’s retail segment climbed 22 percent to $23.6 million during the quarter, or 40.6 percent of total revenue.

According to Robert Bernard, the chief executive officer of dELiA*s, the company’s performance was mainly supported by top-line and profit improvements in the dELiA*s brand, improved ability to realize higher initial markups and merchandise product margins, and overall improvements in overhead which were initiated in the first quarter of 2008. Late last week, analyst CL King upgraded dELia*s shares to Strong Buy from Neutral and set a target price of $4 per share.

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