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
d assumptions about
b
our Company, economic and
d market
k sectors and
d the
h
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 forwardlooking statements whether as a result of new information, future events
or otherwise.
h
Actuall events and
d results
l may differ
d ff from
f
those
h
expressed
d in any forwardlooking
f
dl k
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,
28,
20 2 and
d our Form 10Q
0 Q for
f the
h fiscal
fi l quarter ended
d d October
O b 27,
2 2012,
20 2 as filed
fil d with
i h the
h
Securities and Exchange Commission.

dELiA*ssOverview
dELiA
Overview

CompanyOverview
M lti h
l t il
i d f t lif t l b d i
il
Multichannelretailcompanycomprisedoftwolifestylebrandsprimarily
marketingtoteengirlsandyoungwomen
Retail Segment accounts for approximately 57% of sales
RetailSegmentaccountsforapproximately57%ofsales
o 106mallbaseddELiA*sstoresin33statesaveraging3,800sq.ft.
o Primarilysellingtops,bottoms,dressesandaccessories

DirectSegmentaccountsforapproximately43%ofsales
o GrowingDirecttoConsumerbusinessconsistsofdELiA*sandAlloycatalogand
ecommerce
o dELiA*s:
Expandedproductofferingincludesshoes,swimwear,outerwearandextendedsizes
Growing12monthbuyerfile,withsignificantcatalogcirculationof20.0millionin2012

o Alloy:

Targetcustomerisanolderteentoyoung,contemporarywoman
Offersbrandedapparel,dresses,accessories,swimwear,footwearandouterwear
Highlypenetratedindenimthroughextendedsizes/inseamsoffering
Catalog circulation of 16 5 million in 2012
Catalogcirculationof16.5millionin2012

ThedELiA*sTargetCustomer
Youngteen,transitioningtoyoungadult
o 15/16yearoldhighschoolgirlissweetspot

ThedELiA*sgirlisagirlygirl;shesplayful,positive
andalwayspresent
o Considersherselfpretty,notsexy
o Isintheknowaboutwhatscoolnow
I i th k
b t h t
l
o Lovessocialmediaandistechnologysavvy

Primarilysuburbanfromabroaddemographic
Primarily
suburban from a broad demographic
spectrum
Independentshoppingstyle,butmoststillusing
Independent
shopping style, but most still using
parentscreditcard
Sheiscelebrityinfluencedwithafeminine,casual,on
trendstyle.
She is celebrity influenced with a feminine casual ontrend
style
5

ThedELiA*sBrandConcept
Everything
we create should inspire her
Everythingwecreateshouldinspireher
Shescreative
Shesinspired
Shesready
Serveasherbestfashionfriend;keepherinthefashionloop
Igniteherimaginationwithgreatoutfittingideas
Providealooktofiteveryadventureandspecialoccasion
Helphertobringheruniquetwisttoanytrend,whiletakingstylecuesfrom
celebrities,magazines,bloggersandfriends

dELiA*s MerchandisingStrategy
Hybrid,fastfashion/verticalmodel
o Providefrequentflowofnew,trendrightmerchandise
o Shiftmixtofashionmerchandise/lessemphasisonkey
items

Bethedestinationforallofheroutfittingneeds
o Trendrightassortmentoftops,fashionbottomsand
accessories
o Greatfittingjeansinthenewestwashes,colors,prints
anddominantingraphictees(intouchwithwhats
currentasevidencedbysuccessofOneDirectiontees)
o MustHaveDressforherspecialevent
M t H
D
f h
i l
t
o Fashionselectionforeveryholiday

MerchantshaveaclearbrandvisionforthedELiA*s
girlthatisutilizedasthefilterforallproduct
selection
Deliver girlygirl
Delivergirly
girlfashionthatcaptures
fashion that captures the
thelook
lookshewants
she wants
7

SourcingSupportsMerchandisingStrategy
Increasedchasesupportedbysourcingmodelandweb/instoretesting
Inhouseproductdevelopmentteamcoordinates
scheduling, cost negotiation and fabric on key
scheduling,costnegotiationandfabriconkey
programs
Flexiblevendormodelfacilitatesfastfashionand
testcapabilities
Procureproductthroughvendorpartnersand
domesticimporters
Improved sourcingonkeyitemstoreducecosts
Shorterleadtimes currentlyhavetheabilityto
replenishmostmerchandisewithin60days,with
someasquicklyastwoweeks
8

PricingandPromotions
Targetpromotionalbuysaroundkeyeventsin
herlife
o Promotionsplannedupfront,notreactionary
o Supportwithmarketingstrategyincatalog,
onlineandinstore

Continue to fine tune pricing strategy

Continuetofinetunepricingstrategy
o EnsurenondELiA*sbrandedproductispriced
right

Opportunitytoofferbetteropeningprice
pointsonselectitemswhileimproving
merchandisemargin

MarketingInitiatives
Create
results driven integrated cross channel campaigns fed by intelligent
Createresultsdriven,integratedcrosschannelcampaignsfedbyintelligent,
relevantandcaptivatingcontent
ContinueutilizationofdELiA*scatalogtodrivetraffictostoresandweb
o Circulatecatalogstoretailbuyers
o Redirectunprofitablecirculationspendtowebbasedmarketinginitiatives

Enhanceemailcampaignsthroughcustomizedmessaging,andmaximize
p g
g
g g,
search&affiliateprograms
Usetargetedsocialmediatoreachoutthroughthechannelsthatsheuses
d l
dailytocommunicatewithfriends
hf
d
o Facebook (680K+friends,up150%vs LY):Keepourgirlinformedofwhats
goingonwithourbrand,includingcutenewoutfits,promotions,trends,and
contests

10

dELiA*sECommercePlatform
Establish
dELiA*sswebsiteasherHomePage
website as her Home Page
EstablishdELiA
Relaunchedecommerceplatform
fordelias.cominSeptemberwith
newlookandsitefeatures
l k d it f t
o NewCustomerreviews
o Greaterabilitytoschedulecreative
&promotions(i.e.FlashSales)

Resultshavebeenpositivethusfar
o Cartconversionimprovedby6%
versuspriortrends
o Flashsaleemailsweretop
as sa e e a s e e top
performersthisholidayseason
o dELiA*smobilegenerated4%of
dELiA*sdirectNov/Decsalesversus
1.5%in2012

NewAlloyecommerceplatformand
mobilesitescheduledtolaunchin
January2013
11

Financial Overview
FinancialOverview

YTDResultsThroughQ3
Retail:
o Threeconsecutivequartersofpositivecomparablestore
salesandimprovinggrossmargins

Direct:
o Q3YTDnetsalesincreaseof2.8%YoY

Doubledigittrafficincreaseinstoresandweb
I
Increasedconversioninstoresandweb
d
i i
d b
DoubledigitincreaseinthedELiA*s12monthbuyerfile
190bpsofleverageinSG&A
C
Completedtransitiontooutsourcedcontactcenterand
l t dt
iti t
t
d
t t
t
d
upgradeofordermanagementsystem
Occupancycostreductionsinlinewithexpectations

Note:YTDasof10/27/12

13

SelectHistoricalPerformanceMetrics
ComparableStoreSales

NetSales Channel
($inmillions)

$223.9

$220.7

$217.2

$105.4

$98.3

$93.9

$118.5

$122.4

$123.2

2009

2010

2011
Retail

$151.6

$
$156.5

$62.0

$63.7

$89.6

$92.8

YTD2011*

YTD2012*

7.3%
0.1%
5.9%

2009

Direct

4.1%

2010

G
GrossMargin
M i

*Note:YTDasoftheendofthethirdfiscalquarter

14

35.0%

33.3%

31.5%

2009

2010

2011

31.1%

1.6%

33.5%

YTD2011* YTD2012*

2011

YTD2011*

YTD2012*

InventoryPosition
Disciplinedinventorymanagement
contributingtoimprovedfinancial
results

InventoryTurnover
4.9x
4.0x

3 6x
3.6x

4.6x

3.9x

3.8x

3.8x

2Q12

3Q12

3Q12averageinventoryperstore
downYoY
1Q11

Expectyearendaverageinventory
perstoretobedownmidsingle
di i
digitsanddirectsegmentyearend
d di
d
averageinventorytobedownlow
singledigitsvs.LY

2Q11

3Q11

4Q11

1Q12

YoYInventoryChange
7 9%
7.9%

1.0%

2.6%

1.0%

7 4%
7.4%

5.9%

5.1% 5.1%

3.4%

2.1%

1.1%

7 4%
7.4%

10.1%

1Q11

11.2%

2Q11

3Q11

4Q11
1Q12
Retail
Direct

Note:Retailinventorychangerepresentsaverageperstore

15

2Q12

3Q12

InvestmentHighlights
Wellestablishedmultichannel,multibrandretailermarketingtoteensandyoung
women
Drivingimprovedstoreproductivitythroughrestructuredmerchandisingand
marketingapproachandenhancedsellingtechniques
P
Potentialforstoreexpansionandimprovedfourwallstoreeconomics
i lf
i
di
df
ll
i
Ecommercegrowthpotentialwithnewwebsitedrivingincreasedproductivityand
conversion
TurnaroundstorywithsignificantupsidetoEBITDA

16