New York & Company misses expectations in third quarter
New York & Company released its third quarter results on Wednesday, which was below its expectations.
Net sales fell to $213.9 million from $219.8 million in the previous year and comparable store sales decreased 0.7%. Gross profit increased 90 basis points to 29.9%, and GAAP net loss was $2.5 million compared to a GAAP net loss of $5.3 million in the prior year. The net loss was flat at $3.0 million on a non-GAAP basis.
In addition, SG&A expenses were $66.1 million compared to $68.6 million in the previous year.
Gregory Scott, New York & Company’s CEO stated: “In the third quarter we delivered sales slightly below our expectations reflecting the difficult mall traffic environment, yet operating results met our guidance as we benefited from our focus on our five key strategic initiatives. To this end, we were especially pleased to see strength across our key initiatives, which are best demonstrated in the ongoing growth of our Eva Mendes collection, increased participation in our private label credit card and loyalty programs, continued growth in our eCommerce channel, and continued progress toward our sourcing, product cost and expense savings goals."
New York & Company remains optimistic for its fourth quarter following its solid Black Friday and Cyber Monday performance. Scott, continued, “As we entered the early part of the fourth quarter we experienced softness in sales, however we were encouraged to see a significant improvement in the trends last week particularly in our eCommerce business. We remain confident in our strategy and believe the continued implementation of our initiatives along with our solid inventory position has us poised to achieve profit growth in the final quarter of the year.”
For the fourth quarter, the company expects net sales to decline in the low single-digit percentage range and comparable store sales to be flat or down slightly on a percentage basis.
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