Net loss grows at New York & Co. in Q1, will alter store count

New York – Increases in selling, general and administrative (SG&A) expenses and interest expenses helped increase net loss at New York & Co. to $4.7 million in the first quarter of fiscal 2015 from $300,000 the same period a year earlier. The growing loss occurred as sales improved 2% to $223.4 million from $219.6 million, and same-store sales rose 1.8%.

In the second quarter, New York & Co. open approximately two new outlet Stores, remodel four existing locations, and close three stores, ending the quarter with 503 stores, including 76 outlet stores. The company also intends to build out its corporate headquarters. Other plans for the remainder of the fiscal year include Investments of $3 million to $4 million in information technology and e-commerce.

In addition, New York & Co. continues to work on the final phases of its business process re-engineering project, which it now expects to generate $20 million to $25 million in annualized savings once fully implemented. These savings began during the first quarter of fiscal 2015 and are expected to build throughout the second half of the fiscal year, with the full implementation completed during fiscal 2016. A portion of these savings are expected to be reinvested to fund growth and will be partially offset by the rent increase for the new corporate headquarters.

During fiscal 2015, net sales and same-store sales are expected to increase by a low single-digit percentage.