- Prachi Singh |
New York & Company’s fourth quarter net sales were 271.3 million dollars compared to 267.4 million dollars in the prior year. Comparable store sales increased 1.9 percent and total net sales increased by 1.5 percent. For fiscal year ended January 30, 2016, net sales were 950.1 million dollars compared to 923.3 million dollars for fiscal year 2014. Comparable store sales increased 3.1 percent against 1 percent decrease last fiscal.
“We finished the year strongly capping off another successful year of growth and continued progress toward our long term goals. The fourth quarter was highlighted by increased sales, positive comparable sales, expansion in gross margin and a reduction in expenses. Combined, this drove a 7 million dollars improvement in GAAP operating income and a 1.1 million dollars increase in non-GAAP adjusted net income versus the fourth quarter of 2014,” said Gregory Scott, New York & Company’s CEO.
Fourth quarter and fiscal year 2015 results
Gross profit as a percentage of net sales increased 10 basis points to 25.7 percent. GAAP operating results improved by 7 million dollars to income of 0.6 million dollars, against fourth quarter GAAP operating loss of 6.4 million dollars last year. On a non-GAAP basis, excluding 0.6 million dollars of non-operating charges, adjusted operating income was 1.3 million dollars, an improvement of 1.3 million dollars.
GAAP net income for the fourth quarter was 0.1 million dollars, or breakeven per diluted share. This compares to the prior year’s GAAP net loss of 6.7 million dollars, or a loss of 0.11 dollar per diluted share. On a non-GAAP basis, the company’s fourth quarter 2015 adjusted net income was 0.7 million dollars, or 0.01 dollar per diluted share against non-GAAP adjusted net loss of 0.4 million dollars, or a loss of 0.01 dollar per diluted share. The company closed 18 New York & Company stores during the quarter, ending the fiscal year with 490 stores, including 82 outlet stores.
GAAP operating loss for the full year was 8.1 million dollars. On a non-GAAP basis, adjusted operating loss was 0.3 million dollars against a GAAP operating loss of 15.6 million dollars and a non-GAAP, adjusted operating loss of 6.4 million dollars for fiscal year 2014. Net loss was 10.1 million dollars, or a loss of 0.16 dollar per diluted share. On a non-GAAP basis, adjusted net loss was 2.3 million dollars, or a loss of 0.04 dollar per diluted share against prior fiscal year net loss of 16.9 million dollars, or a loss of 0.27 dollar per diluted share.
Announces positive outlook
For the first quarter of fiscal year 2016, the company expects net sales and comparable store sales to increase by a low single-digit percentage. Gross margin is expected to increase in the range of 100 - 200 basis points from the prior year’s first quarter rate.
Operating results on a GAAP basis are expected to improve by approximately 6 million dollars to 7 million dollars, as compared to a loss of 4.2 million dollars in the prior year. On a non-GAAP basis, operating results are expected to improve to income of between 2 million dollars and 3 million dollars, resulting in the best operating performance in the first quarter in eight years and anticipated diluted earnings per share in the range of 0.02 dollar to 0.04 dollar.