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New York & Co ends the year with strengthened balance sheet
18
Mar '10
New York & Company, Inc a specialty apparel chain with 576 retail stores announced results for the fourth quarter and the full fiscal year ended January 30, 2010. The results of operations discussed below are for the Company's continuing operations only, the New York & Company brand.

Fourth Quarter and Fiscal Year Results

The Company significantly improved its profitability with net income from continuing operations of $0.04 per diluted share in the fourth quarter of fiscal year 2009, as compared to a net loss from continuing operations of $0.46 per diluted share in the prior year period. These results included certain unusual items that negatively impacted earnings for the period. Adjusted net income from continuing operations for the fourth quarter of fiscal year 2009 was $0.06 per diluted share, which excludes pre-tax restructuring charges of $1.9 million comprised of a $1.2 million non-cash asset impairment charge related to underperforming stores and a $0.7 million cash charge related to severance. This compares to prior year adjusted net loss from continuing operations of $0.20 per diluted share, which excludes $26.0 million of pre-tax restructuring and other charges. For the fourth quarter of fiscal year 2009, net sales were $298.0 million, as compared to $325.1 million for the fourth quarter of fiscal year 2008, and comparable store sales for the fourth quarter of fiscal year 2009 decreased 7.7% versus a decline of 10.9% last year.

Richard P. Crystal, New York & Company's Chairman and CEO, stated: "Our fourth quarter results were driven by an 800 basis point improvement in gross profit margin and the ongoing benefit of our cost reduction plan. In a challenging environment and despite the impact of our conservative inventory position on sales, we accomplished many of our financial and strategic objectives in fiscal 2009. Financially, we generated over $30 million in cost savings and ended the year with a strengthened balance sheet, including $87 million in cash-on-hand, a 15% decline in average inventory per store, reduced debt and no borrowings under our credit facility. Strategically, we continued to make progress in many of our merchandising initiatives as we upgraded our fashion assortments and improved our casual offerings. As a result of our actions, we ended fiscal 2009 in a strengthened position with strategies in place to continue our progress in 2010."

For fiscal year 2009, net sales were $1,006.7 million, as compared to net sales of $1,139.9 million for fiscal year 2008, and comparable store sales decreased 11.8% for fiscal year 2009 versus a decline of 8.6% last year. Net loss from continuing operations was $0.23 per diluted share for fiscal year 2009, as compared to a net loss from continuing operations of $0.34 per diluted share in fiscal year 2008.

Adjusted net loss from continuing operations for fiscal year 2009 was $0.20 per diluted share, which excludes pre-tax restructuring charges recorded during the third and fourth quarters of $0.5 million and $1.9 million, respectively. These charges were comprised of a $1.2 million non-cash asset impairment charge related to underperforming stores and $1.2 million of cash charges related to severance. This compares to the prior year adjusted net loss from continuing operations of $0.05 per diluted share, which excludes $28.6 million of pre-tax restructuring and other charges.

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New York & Company Inc

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