New York & Company reports 3.3 percent decline in Q1 net sales

New York & Company’s first quarter net sales were 216 million dollars, as compared to 223.4 million dollars in the prior year. Comparable store sales decreased 2.3 percent and total net sales decreased by 3.3 percent, reflecting the operation of 488 stores this year, as compared to 504 in the first quarter of 2015.

“We began the quarter with positive sales trends; however, as we entered the last week of March, we experienced a slowdown in traffic to our brick-and-mortar stores, that continued into April, and led to sales and profitability below our expectations. As we move into the second quarter, and for the balance of the year, we are adjusting our gameplan so that we leverage what is working, and at the same time improve our traffic trends to our stores,” said Gregory Scott, New York & Company’s CEO.

First quarter results in detail

Gross profit as a percentage of net sales decreased 110 basis points to 27.7 percent versus the fiscal year 2015 first quarter gross profit percentage of 28.8 percent.

GAAP operating results declined to a loss of 5.4 million dollars, as compared to the prior year’s first quarter GAAP operating loss of 4.2 million dollars. Excluding 2.9 million dollars of non-operating charges, the non-GAAP adjusted operating loss in the prior year’s first quarter was 1.4 million dollars. GAAP net loss was 5.7 million dollars, or a loss of 0.09 dollar per diluted share compared to the prior year’s GAAP net loss of 4.7 million dollars, or a loss of 0.07 dollar per diluted share.

The company converted 50 New York & Company stores to outlet stores and closed 2 New York & Company stores during the first quarter, ending the first quarter with 488 stores, including 132 outlet stores.

Announces lower second quarter outlook

For the second quarter of fiscal year 2016, the company’s net sales and comparable store sales are expected to be flat to slightly negative. Gross margin is expected to be flat to up 50 basis points from the prior year’s second quarter rate. During the second quarter, the Company expects to open one New York & Company store, remodel two and close two stores, ending the second quarter of fiscal year 2016 with 487 stores, including 132 Outlet stores.

picture:nyandcompany.com