- Prachi Singh |
RTW Retailwinds, Inc., formerly known as New York & Company, Inc. reported net sales of 247.3 million dollars compared to 278.7 million dollars in the prior year, reflecting a reduction in comparable store sales, a reduction in store count by 36 closed stores, and the impact of the 53-week year in the prior year, partially offset by the inclusion of sales from Fashion to Figure. The company said, comparable store sales decreased 1.5 percent, representing a decline in the company’s brick-and-mortar business, partially offset by growth in the Fashion to Figure brand.
Commenting on the company’s results, Gregory Scott, RTW Retailwinds’ CEO said in a statement: “While our fourth quarter results were in line with our updated guidance and the year included significant progress toward our goals, we were disappointed to see the momentum in our business soften in January. We are rebalancing the marketing media mix towards new customer acquisition, have made leadership changes in our digital organization, and are adjusting our go-forward assortments in SoHo Jeans to improve the overall trend.”
Full year net sales decline at RTW Retailwinds
Net sales were 893.2 million dollars for fiscal year 2018 compared to 926.9 million dollars for fiscal year 2017. The reduction reflects a reduction in store count and the elimination of the 53rd week from last year, partially offset by the addition of Fashion to Figure and growth in ecommerce, while comparable store sales increased 0.4 percent.
Gross profit for the fourth quarter as a percentage of net sales decreased 70 basis points to 28.8 percent from 29.5 percent last year. GAAP net loss was 3.6 million dollars or a loss of 6 cents per diluted share compared to GAAP net income of 4.7 million dollars or earnings of 7 cents per diluted share in the prior year. On a non-GAAP basis, adjusted net loss was 0.3 million dollars or breakeven per diluted share compared to adjusted net income of 5 million dollars or earnings of 8 cents per diluted share last year.
Net income for the year was 4.2 million dollars or earnings of 6 cents per diluted share. On a non-GAAP basis, adjusted net income was 9.6 million dollars or earnings of 15 cents per diluted share. This compares to the prior fiscal year net income of 5.7 million dollars or earnings of 9 cents per diluted share. On a non-GAAP basis, prior year adjusted net income was 6.4 million dollars or earnings of 10 cents per diluted share. Adjusted EBITDA was 33.2 million dollars compared to 30.4 million dollars in fiscal year 2017.
During the fourth quarter, the company opened one Fashion to Figure store, closed 18 locations, and remodelled/refreshed one existing location ending the fourth quarter with 411 stores, including 119 Outlet stores.
RTW Retailwinds expects high single-digit drop in Q1 net sales
For the first quarter, the company expects net sales to decrease in the high single-digit range, reflecting the reduced store count, combined with reductions in comparable store sales in the mid single-digit percentage range. Gross margin on a GAAP basis is expected to decrease 100 to 150 basis points.
During the first quarter, the company expects to open one New York & Company store and two Fashion to Figure stores, remodel/refresh four existing stores, and close two locations. For fiscal year 2019, the company expects to open approximately eight New York & Company stores and eight Fashion to Figure stores, remodel/refresh eight existing stores, and close 15 to 20 stores, ending the fiscal year with roughly 407 to 412 stores.
Picture:Facebook/New York & Company