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ALOY 3Q Profit rises to $7.3 Million
Monday November 21, 5:44 pm ET

Alloy Third-Quarter Earnings Soar to $7.3 Million on Higher Revenue, Improved Margins


NEW YORK (AP) -- Alloy Inc., a marketing and retail company that targets people aged 10 to 24, said Monday its third-quarter income soared more than fourfold on higher revenue and improved margins.
For the quarter ended Oct. 31, the company earned $7.3 million, or 15 cents per share, compared with $1.6 million, or 4 cents per share. Results in the latest quarter include spin-off related expenses of $1.5 million, or 3 cents per share. In the year-ago period, income from continuing operations in the year-ago period was $1.2 million, or 2 cents per share.


Revenue for the period rose 18 percent to $122.9 million from $104.4 million a year earlier as both merchandise and sponsorship revenue posted gains. The gross profit increased to $62.6 million, or 50.9 percent of revenue, from $50.2 million, or 48.1 percent of revenue, driven primarily by significant gross margin improvement in both the company's media and promotional marketing businesses as well as improvements in the both segments of Alloy's merchandising business.

Alloy also said the spin-off of retailer dELiAs is on schedule to occur before the fiscal year-end