New York & Co. Narrows Q2 Loss as Sales Rise

In Industry News, Reports, What's New by Jeff PrineLeave a Comment

nyNew York—New York & Co. has managed to narrow its loss during the second quarter due to to lower costs and sales growth.

For the three months ended August 2, New York & Co. reported a net loss of $147,000 compared with a loss of $2.71 million in the same quarter a year ago.

Total sales were up 1.3% to $226.1 million. Comparable store sales increased 2.3%.

‘Breakeven Performance’

In the first six month of the year, New York & Co. posted net sales of $445.7 million, a 1.1% decline from $450.5 million in the same period a year ago. Comparable store sales were flat. E-commerce represented 9% of total sales vs. 8% during the same period a year ago. That amounts to about $20.3 million in online revenue, up 14% from $17.8 million in 2013.

Net loss for the first half was $429,000 vs. a loss of $1.12 million last year.

CEO Gregory Scott stated: “We delivered a solid second quarter with positive comparable store sales, gross margin expansion, and expense reduction which demonstrates continued progress against the key priorities we outlined at the beginning of the year. While we continue to operate in a challenging retail environment, during the quarter we experienced increases in average dollar sale, conversion, and average unit retail. This led to a breakeven performance, which represented a significant improvement over last year’s operating loss and the highest second quarter gross margin performance since fiscal year 2008.”

Gross profit as a percentage of net sales improved 50 basis points versus the prior year period driven by improved product costs combined with reductions in buying and occupancy costs.

Selling, general and administrative expenses as a percentage of net sales were effectively managed during the quarter and decreased 60 basis points versus the prior year.

Total quarter-end inventory increased 3% as compared to the end of last year’s second quarter reflecting slightly lower levels of in-store inventory offset by higher levels of in-transit inventory due to longer lead times and delays associated with the company’s contingency plans related to a potential work stoppage affecting certain ports on the West Coast.