jQuery - why does delegate propagate even after e preventDefault is called

Question

I have a div with a nested link. The div has a delegate handler for 'click', which alerts "Div". The link within the div also has a delegate handler for 'click' wherein e.preventDefault(); is called before alerting "Link". When I click the link, I see the "Div" alert, and the "Div" alert. I'm unclear why this is happening since I'm attempting to stop propagation from the link's click handler.

JavaScript

$('body').delegate('.outer', 'click', function(e){
    e.preventDefault();
    alert('Div');
});

$('body').delegate('.outer a', 'click', function(e){
    e.preventDefault();
    alert('Link');
    // Note: I've also tried returning false (vs using preventDefault), per the docs
});

HTML

<div class="outer">
    <a href="#">Click me</a>
</div>