New York & Company swings to Q4 loss, will close stores

New York – New York & Company Inc. reported a net loss of $6.7 million in the fourth quarter of fiscal 2014, compared to net income of $6.9 million in the same quarter a year earlier. A variety of costs, including increased selling, general and administrative (SG&A) expenses as well as expenses related to relocation of corporate headquarters and severance, contributed to New York & Company’s negative profit results.



For fiscal year 2015, New York & Company expects to open approximately three new New York & Company stores, between 11 and 15 new outlet stores, convert nine New York & Company locations to new outlet stores, remodel between eight and 12 existing stores and close between 18 and 22 stores, ending the fiscal year with between 496 and 504 stores, including between 82 and 86 outlet stores.



During the first quarter of fiscal year 2015, the company expects to open approximately two new stores, three new outlet Stores, remodel two existing locations, close five stores, and convert nine New York & Company locations to new outlet stores.



Net sales were $267.4 million, down 1% from $271 million in the prior year. Comparable store sales decreased 0.9%. Soft demand for seasonal products, combined with product delivery delays driven by the disruption at the West Coast ports, created top line sales pressures and an increase in promotional activity.



Gregory Scott, CEO, New York & Company, said he is positive about the retailer’s future.



“During the past four years we have worked to stabilize our store fleet by closing underperforming locations, we have focused on growth opportunities with a strong return on investment, including the opening of outlet stores and ecommerce while building our omnichannel capabilities,” said Scott. “This in combination with delivering the right fashion and value for our customers and maintaining stringent control of inventory is expected to bring about improved sales productivity and profitability for our company.”



For the full fiscal year, New York & Company reported a net loss of $16.88 million, compared to net income of $2.39 million the previous fiscal year. Net sales were $923.3 million, down 2% from $939.2 million for fiscal year 2013. Comparable store sales decreased 0.9%. In fiscal 2015, New York & Company expects net sales and same-store sales to increase in the low single-digit percentage from the prior year.