Country: USA

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.

GAP Inc., the US-based apparel retailer, has announced financial results for the second quarter of 2017 fiscal year. Its comparable sales were up by 1 per cent during the review quarter against a 2 per cent decrease last year.

The company earned US $ 271 million net income in the quarter gains US $ 125 million a year ago. Its total revenue, however, declined 1.4 per cent to settle at US $ 3.8 billion.

“With a third consecutive quarter of comparable sales growth, we are seeing our investments in product, customer experience, and brand equity begins to pay off,” said Art Peck, President and CEO, GAP Inc.

However, the fashion brand’s second quarter net sales stood at US $ 3.80 billion against US $ 3.85 billion for the same quarter of last fiscal. Net sales during the second quarter were negatively impacted by the translation of foreign currencies into US dollars.

GAP’s global brands like Old Navy noted a 5 per cent rise in comparable sales versus flat last year. GAP Global noted a (-) 1 per cent drop in sales against a (-) 3 per cent last year. Banana Republic Global reported a (-) 5 per cent decline in comparable versus (-) 9 per cent in the same period of 2016.

The apparel retailer now expects a flat or slight increase in comparable sales for the 2017 fiscal year. Foreign currency fluctuations year-over-year and the impact of international closures may result in slight decrease in net sales for the full year, GAP states.

JCPenney, the US-based fashion retailer, has rolled out financial results for the second quarter ended July 29, 2017. The company’s comparable sales plunged 1.3 per cent during the quarter. Its adjusted EBITDA stood at US $ 196 million compared to US $ 233 million last year.

The fashion company recorded a net loss of US $ 62 million this year against a net loss of US $ 56 million in the period a year prior. Operating income stumbled to US $ 53 from US $ 76 million.

During the second quarter, the company liquidated inventory in 127 of its closing stores. The move negatively impacted the gross margin and EPS of JCPenney.

The retailer’s net sales, however, increased by 1.5 per cent to US $ 3.0 billion against US $ 2.9 billion in the corresponding quarter last year.

Marvin Ellison, Chairman and CEO, JCPenney said, “We are pleased to deliver a top line sales increase of 1.5 per cent. While broader retail remains challenged, we are encouraged by the improved performance in our total apparel business, including a significant acceleration in kids’ apparel. The company is off to a strong start in August for the all-important back to school season. We are excited by this momentum and expect to deliver improved results in the back half of the year.”

American fashion retailer Macy’s decision to close stores (after witnessing a tough time in the past) has not done any good to the company rather the sales slipped further in the second quarter.

Macy’s reports that during the quarter its sales dropped 5.4 per cent to reach US $ 5.552 billion against US $ 5.866 billion in the corresponding period of 2016. Comparable sales on an owned-basis also went down (2.8 per cent) for the retailer.

The fashion giant’s operating income was valued at US $ 254 million or 4.6 per cent of sales for the second quarter of 2017 compared to US $ 117 million or 2.0 per cent of sales for the second quarter of 2016.

Additionally, net sales for the first six months of the year plunged 6.4 per cent to reach US $ 10.890 billion from US $ 11.637 billion in the first half of 2016. Comparable sales on an owned-basis were down 4.0 per cent and 3.6 per cent on an owned plus licensed basis.

“We are working with a mindset of continuous improvement and will adapt our business in order to reach our goal of stabilizing the brick-and-mortar business while investing for accelerated growth in digital and mobile,” said Jeff Gennette, President and Chief Executive Officer, Macy’s in the press release issued.

Macy’s has also reaffirmed its sales and earnings guidance for the full year 2017. The company expects comparable sales for the full year to further drop by 2.2-3.3 per cent.