"We continue to believe there are opportunities going forward that are exceptional," offered Bernard, whose company increased its retail square footage by 25% in FY 2006, bringing the store count from 59 to 74 while closing four, including the last two in an outlet setting. The line of sportswear and home furnishings for the 12-to-19-year-old set is the key to Delia's success, Bernard said, but he also shared plans to tweak store layouts and "arm-twist developers" when necessary to ensure leased locations—and financial terms—are to the chain's benefit. The Delia's in a Winston-Salem, NC mall saw a 40% jump in sales last year simply by being moved to a better spot, Bernard relayed.

"We continuously review our real estate portfolio, making changes we believe strengthen our economic model," he stated. The expansion this year will be concentrated to the north and east of Texas, he said, detailing a program to "fill-in existing markets." Bernard did not list any of the new locations, but one document showed Delia's coming soon to accommodate style-conscious youth in Illinois, Missouri, South Carolina and West Virginia. Bernard would only say he hopes to work with major mall owners such as Simon Property Group, Taubman Centers and General Growth Properties to strike competitive leases and find suitable locales.

"We want good neighbors, we want clusters, we want to go into a market with authority, and we're patient enough to do that correctly," Bernard said. Delia's has a substantial retail presence in the southeast and throughout New Jersey, New York and Pennsylvania. The firm also owns the Alloy and CCS brands. Opening the 20-plus Delia's stores this year would increase square footage by another 25%, Bernard said.

Thanks to the stores that opened in FY 2006, net sales for the year were up 22% to $94.1 million. Same-store activity was down 2%, but Bernard praised a late rally for improving that mark by the fourth quarter, during which Delia's registered a 5% gain compared to the final quarter of 2005. "The customer acceptance that began during the back-to-school season continued into the fourth quarter," he said, adding, "we are particularly pleased with those results." The retail performance was perhaps even more impressive given a 10% hike in direct marketing sales for the year, from $158.0 million to $173.5 million.

Riding such top sellers as "core denim" and knitwear, Delia's aims to post another year of 14 to 15% revenue growth, Bernard said, while seeking comp sales growth in the "low-to-high-single digits" in the first half of the year and "mid-single-digit" comp growth over the final six months.