New York—New York & Co. reported last week that it narrowed its second quarter loss on higher comparable store sales and improved margins that offset a sales decline due to fewer stores.
For the quarter ended August 3, the women’s specialty retailer reported a loss of $2.7 million, or 4 cents a share, compared with a loss of $4.3 million, or 7 cents a share, a year ago.
Net sales fell 2% to $223.1 million despite a 2.1% increase in its comparable store sales.
Analysts’ average estimate expected a loss of 2 cents a share had projected on $231 million in sales.
Gross margin widened to 26.9% from 25.3% a year ago.
Collaboration with Eva Mendes Premieres Next Month
The company reports its e-commerce sales grew 20% from last year, now accounting for 7.6% of total sales during the quarter.
“Outlets also continued to be a highly productive and profitable channel,” the company said, noting “strong comps and growth to 10.4% of total sales.”
New York & Co. remodeled one existing store and closed seven locations, ending the quarter with 512 stores, down from 537 locations last year.
CEO Gregory Scott credited “a favorable response to our strategic merchandise change to a new ‘wear-now’ assortment in July. We also continue to be pleased with our event-driven promotions which generated a great customer response, particularly in the selling period leading up to Mother’s Day and Memorial Day. As we enter the fall season, we are encouraged by the initial response to our signature pant and denim event.”
In September, New York & Co. will be launching its collaboration with Eva Mendes “which we expect will broaden our consumer reach and create additional purchases for existing customers.”
For the third quarter, New York & Co. expects total sales will increase in the low single-digits, while comp store sales are expected to rise in the low- to mid-single-digits. Analysts’ average estimate expects total sales to rise 1% to $222 million.