New York & Co reports decline in Q3 comparable and net sales
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Commenting on the results, Gregory Scott, New York & Company’s CEO, stated, “Our third quarter operating loss was ahead of our revised guidance; nonetheless we are disappointed to not meet our original expectations reflecting a soft performance in our wear-to-work category, and the impact of product delays and increased costs related to the labor issues at the West Coast ports. During the quarter, we initiated a comprehensive review of our business processes and organizational structure to identify business improvement strategies and cost saving opportunities.”
For the nine months ended November 1, 2014, net sales were 656 million dollars, as compared to 668.2 million dollars for the nine months ended November 2, 2013. Comparable store sales decreased 1.1 percent, as compared to an increase of 1 percent in the prior year period.
The company recently initiated an organizational realignment in connection with the business analysis performed. As a result of the organizational changes made, the company expects to save 9 million dollars to 10 million dollars in annual payroll. For the fourth quarter of fiscal year 2014, the company expects net sales and comparable store sales to be flat to down in the low single-digit percentage versus last year. Gross margin is expected to be down approximately 200 basis points from the prior year’s rate.
The company also expects to close nine existing New York & Company locations during the fourth quarter of fiscal year 2014 and plans to end fiscal year 2014 having opened 12 new stores, including 11 outlet stores, remodeled 11 existing stores and closed approximately 16 stores, with roughly 503 stores, including 62 outlet stores.