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New York & Company net sales rise 4.5 percent in Q3

By Prachi Singh

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For the third quarter ended October 31, 2015, New York & Company said net sales were 219.8 million dollars, as compared to 210.3 million dollars in the prior year. Comparable store sales increased 4.9 percent and total net sales increased by 4.5percent.

“We are pleased to continue our positive momentum from the first half of the year and deliver another solid quarter where we achieved growth across key financial metrics, including increased sales, positive comparable store sales, and expansion in gross margin. Combined, this drove a 4.1 million dollars improvement in adjusted operating loss versus last year’s third quarter,” said Gregory Scott, CEO, New York & Company.

Gross profit up in Q3

Gross profit as a percentage of net sales increased 180 basis points versus the fiscal year 2014 third quarter, which the company said was principally due to reduced product costs, decreased buying expenses and improved leverage of fixed occupancy costs, partially offset by increased shipping costs associated with significant growth in the company’s ecommerce business.

GAAP operating loss was 4.9 million dollars, as compared to the prior year’s third quarter GAAP operating loss of 9.5 million dollars. On a non-GAAP basis, excluding 2.3 million dollars of non-operating charges, adjusted operating loss was 2.6 million dollars, an improvement of 4.1 million dollars.

GAAP net loss for the third quarter of fiscal year 2015 was 5.3 million dollars, or 0.08 dollar per diluted share. This compares to the prior year’s GAAP net loss of 9.7 million dollars, or 0.15 dollar per diluted share. On a non-GAAP basis, the company’s third quarter adjusted net loss was 3 million dollars, or 0.05 dollar per diluted share.

The Company opened five new stores, including two New York & Company stores and three Outlet stores, converted three New York & Company stores to Outlet stores, remodeled two New York & Company stores, and closed one store during the third quarter, ending the fiscal quarter with 508 stores, including 82 Outlet stores.

Net sales for nine months increase

Net sales were 678.8 million dollars, as compared to 656 million dollars for the nine months ended November 1, 2014. Comparable store sales increased 3.5 percent, as compared to a decrease of 1.1percent in the prior year period. GAAP operating loss was 8.7 million dollars. On a non-GAAP basis, adjusted operating loss was 1.6 million dollars. This compares to a GAAP operating loss of 9.2 million dollars and a non-GAAP, adjusted operating loss of 6.4 million dollars for the nine months ended November 1, 2014. Net loss was 10.2 million dollars, or a loss of 0.16 dollar per diluted share.

On a non-GAAP basis, adjusted net loss was 3 million dollars, or a loss of 0.05 dollar per diluted share. This compares to the prior year period’s net loss of 10.2 million dollars, or a loss of 0.16 dollar per diluted share. On a non-GAAP basis, prior year period’s adjusted net loss was 7.4 million dollars, or a loss of 0.12 dollar per diluted share.

Fourth quarter and full-year outlook

For the fourth quarter of fiscal year 2015, 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 50-150 basis points from the prior year’s fourth quarter rate. Operating results on a GAAP basis for the fourth quarter of fiscal year 2015 are expected to improve significantly, reflecting operating income between one million dollars and three million dollars.

The company plans to end the full fiscal year 2015 having opened 12 new stores, including four New York & Company stores and eight Outlet stores, converted 12 New York & Company stores to Outlet stores, remodeled eight existing stores and closed approximately 24 stores, ending the fiscal year with roughly 492 stores, including 82 Outlet stores.

New York & Company