New York & Company’s Q4 comparable sales down 0.4 percent

New York & Company’s fourth quarter net sales were 266.3 million dollars, which the company said, included 5.4 million dollars of royalty and related revenue from the new private label credit card agreement, as compared to 271.3 million dollars in the prior year. Comparable store sales decreased 0.4 percent. Net sales were 929.1 million dollars for fiscal year 2016 compared to 950.1 million dollars for fiscal year 2015. Comparable store sales decreased 0.7 percent against an increase of 3.1 percent in the prior fiscal year.

Commenting on the company’s results, Gregory Scott, New York & Company’s CEO stated in a press release, “In a rapidly changing retail environment, our fourth quarter results met the high-end of the updated outlook we issued in January and included a double-digit increase in ecommerce sales, strong results in our Eva Mendes Collection, and expansion in overall gross profit margin despite mall traffic declines that lowered sales.”

Reports GAAP net loss of 10 mn dollars

Gross profit as a percentage of net sales increased 170 basis points to 27.4 percent versus the fiscal year 2015 fourth quarter gross profit percentage of 25.7 percent. This increase, the company said, reflects 5.4 million dollars in benefits from the new private label credit card agreement, product cost reductions and efficiencies from vendor negotiations related to the implementation of Project Excellence, as well as a 40 basis point improvement in the leverage of buying and occupancy costs, partially offset by increased season end product markdowns.

GAAP operating loss was 9.2 million dollars, which included a non-GAAP charge of 6.2 million dollars. Excluding this charge, adjusted operating loss was 3 million dollars compared to the prior year’s non-GAAP operating income of 1.3 million dollars, which excluded 0.6 million dollars of non-operating charges.

GAAP net loss for the fourth quarter was 10 million dollars, or a loss of 0.16 dollar per diluted share, as compared to the prior year’s breakeven results. On a non-GAAP basis, the company’s adjusted net loss was 3.8 million dollars or a loss of 0.06 dollar per diluted share. This compares to prior year’s fourth quarter, non-GAAP adjusted net income of 0.7 million dollars or earnings of 0.01 dollar per diluted share.

GAAP operating loss was 15.4 mn dollars for FY16

GAAP operating loss was 15.4 million dollars. On a non-GAAP basis, adjusted operating loss was 9.7 million dollars compared to a GAAP operating loss of 8.1 million dollars and a non-GAAP, adjusted operating loss of 0.3 million dollars for fiscal year 2015.

Net loss was 17.3 million dollars or a loss of 0.27 dollar per diluted share. On a non-GAAP basis, adjusted net loss was 11.6 million dollars or a loss of 0.18 dollar per diluted share compared to the prior fiscal year net loss of 10.1 million dollars or a loss of 0.16 dollar per diluted share. On a non-GAAP basis, prior fiscal year adjusted net loss was 2.3 million dollars, or a loss of 0.04 dollar per diluted share.

Expects low single-digit sales decline in Q1

For the first quarter, net sales are expected to decline in the low single-digit percentage range, reflecting decreased store count, partially offset by approximately 5.8 million dollars of royalty and other revenue from the new private label credit card agreement and growth in the ecommerce business. Comparable store sales are expected to range from low single-digit negative to flat on a percentage basis.

The company said, gross margin is expected to be up significantly reflecting benefits from the company’s new private label credit card agreement, reductions in product costs and agent expenses resulting from Project Excellence, and reductions in occupancy costs due to the company’s aggressive real estate negotiations, partially offset by increased shipping costs associated with the growing omni-channel business.

Operating results on a GAAP basis for the first quarter of fiscal year 2017 are expected to improve from the prior year, reflecting a loss of 2 million to 5 million dollars. During the first quarter, the company expects to open one outlet store, remodel/refresh three existing stores and close six New York & Company stores. In addition, the company expects to open five new stores in competitor locations under short-term leases.

For fiscal year 2017, the company expects to open two new Outlet stores, remodel/refresh eight existing stores, open six to 10 stores in existing competitor retail space under flexible leases and close 36 stores, including three outlet stores, ending the fiscal year with roughly 440 stores, including 122 outlet stores.

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