New York & Company Inc. has announced financial results for the second quarter ended July 29, 2017. During the quarter under review, its net sales declined 3.7 per cent to US $ 224.1 million from US $ 232.8 million in the same quarter last year.
Comparable-store sales for the fashion brand tumbled 1.1 per cent. The drop reflects double-digit percentage growth in the e-commerce segment, offset by decreases in comparable store sales at physical stores.
However, the omni-channel women’s fashion retailer noted a significant improvement in its GAAP operating income to US $ 5.2 million as compared to US $ 1.3 million in the previous year’s same quarter. Its non-GAAP adjusted operating income in the current year’s second quarter remained US $ 3.5 million, excluding a US $ 1.7 million net non-operating benefits. Meanwhile, non-GAAP adjusted net income was US $ 3.1 million.
The retailer’s second quarter gross profit soared 180 basis points to settle at 30.6 per cent against 28.8 per cent last year.
Gregory Scott, CEO, New York & Company commented, “The quarter marked our highest gross margin and operating income since second quarter 2005 and 2008, respectively. We also made progress on our profit improvement objectives which resulted in lower product costs, reductions in occupancy costs, decreases in buying expenses, savings in selling, general and administrative expenses, all while advancing our omni-channel and loyalty initiatives.”
The company now expects its net sales and comparable store sales to remain (almost) flat in the third quarter. It further plans to open two New York & Company stores under short-term flexible leases in the next quarter.
