I'm always intrigued by companies changing their strategy or philosophy. Most investors consider such companies turnaround plays, because when companies change course, it's generally because there isn't much of a choice.

The changes rarely bear immediate fruit, though the fourth-quarter performance by dELiA*s (NASDAQ:DLIA) appears to be garnering plenty of attention, with the shares up 6% today. Investors' favor may stem from the 70% increase in earnings from continuing operations, up to $0.17 per diluted share from last year's $0.10. That's an excellent quarter in any book, but there are other items in this company's financials that intrigue me more.

The most intriguing item I see is the company's gross margins, which came in at 41%. This is a slight dip from the third quarter, but well above last year's 37.6% showing. Looking a bit further back in time, we see that the last time the company had back-to-back quarters with gross margins over 40% was nearly four years ago, in 2002. The improving margins that the company is experiencing are largely due to a shift in focus towards apparel and away from accessories and home furnishings. I can't imagine that competing with Target (NYSE:TGT) and Bed Bath & Beyond (NASDAQ:BBBY) for home goods, and with Urban Outfitters (NASDAQ:URBN), Gap (NYSE:GPS), and a gaggle of other retailers that target young women is an easy task. Focusing on the area where the company is most profitable doesn't make things easy, but it certainly makes them easier.

The company is also being cautious with its expansion of new stores, while simultaneously shutting down underperforming stores and outlets. It's not a strategy that will show rocketing growth. But it is a strategy that has allowed the company to turn in two consecutive profitable quarters for the first time in six years.

I haven't had a chance to build out a valuation for dELiA*s, so I can't comment as to whether or not the shares are still attractively priced. With the changes happening at dELiA*s, it will take a bit longer than normal to look at the potential for free cash flow growth and come up with any kind of estimates that are reasonable. That said, the company's recent performance, with its more focused strategy on apparel, has me intrigued. It's enough to get me to dig deeper into the company's filings to understand the company and its management in more detail.

Bed Bath & Beyond is a Motley Fool Stock Advisor selection. Gap is both a Motley Fool Stock Advisor and a Motley Fool Inside Value recommendation.

Nathan Parmelee has no financial interest in any of the companies mentioned. The Motley Fool has an ironclad disclosure policy.