Interviews
News Flash
NY & Co sees remarkable growth in pant segment
21 May '10
5 min read
Outlook
The Company continues to plan for a challenging consumer spending environment in fiscal year 2010 and has planned promotional events accordingly. Regarding expectations for the second quarter of fiscal year 2010, the Company provided the following:
• Comparable store sales for the second quarter of fiscal year 2010 are expected to be positive.
• Gross margins for the second quarter of fiscal year 2010 are expected to decline from the prior year's levels reflecting the Company's heightened promotional cadence.
• Selling, general and administrative expenses for the second quarter of fiscal year 2010 are expected to increase as a percentage of net sales versus the prior year primarily as a result of spending necessary to support increasing sales within the Company's existing store base, as well as spending related to its growing e-commerce and outlet businesses.
• To focus on its core business, the Company expects to close five test accessories stores and incur charges of approximately $2.0 million to $2.5 million related to the termination of this test concept. In addition to these charges, the concept is also expected to negatively impact the Company's operating results by approximately $0.01 per diluted share in the second quarter, which is consistent with its impact on the Company's operating results during the first quarter of this year.
• Given current business trends, the Company expects promotional activity to accelerate and now expects a loss per diluted share from continuing operations for the second quarter of fiscal year 2010 to be greater than the year-ago period. This estimate excludes the aforementioned charges and expected operating results related to the test accessories concept.
• The Company plans to continue its investment in inventory and expects to end the Spring season with double-digit increases, including higher levels of inventory in the important pant category.
• Capital expenditures are expected to range between $10.0 million and $13.0 million for the second quarter of fiscal year 2010, as compared to $3.2 million in the same period of the prior year. The Company plans to open 12 to 16 new stores, remodel three to seven existing locations, and close six to 10 stores, ending the first half of fiscal year 2010 with approximately 585 stores.
• The Company does not anticipate the need to use the credit facility during the second quarter of fiscal year 2010.
New York & Company, Inc., founded in 1918, is a leading specialty retailer of fashion oriented, moderately priced women's apparel. The Company's proprietary branded New York & Company merchandise is sold exclusively through its national network of retail stores and e-commerce store. The Company currently operates 579 stores in 43 states.
The Company continues to plan for a challenging consumer spending environment in fiscal year 2010 and has planned promotional events accordingly. Regarding expectations for the second quarter of fiscal year 2010, the Company provided the following:
• Comparable store sales for the second quarter of fiscal year 2010 are expected to be positive.
• Gross margins for the second quarter of fiscal year 2010 are expected to decline from the prior year's levels reflecting the Company's heightened promotional cadence.
• Selling, general and administrative expenses for the second quarter of fiscal year 2010 are expected to increase as a percentage of net sales versus the prior year primarily as a result of spending necessary to support increasing sales within the Company's existing store base, as well as spending related to its growing e-commerce and outlet businesses.
• To focus on its core business, the Company expects to close five test accessories stores and incur charges of approximately $2.0 million to $2.5 million related to the termination of this test concept. In addition to these charges, the concept is also expected to negatively impact the Company's operating results by approximately $0.01 per diluted share in the second quarter, which is consistent with its impact on the Company's operating results during the first quarter of this year.
• Given current business trends, the Company expects promotional activity to accelerate and now expects a loss per diluted share from continuing operations for the second quarter of fiscal year 2010 to be greater than the year-ago period. This estimate excludes the aforementioned charges and expected operating results related to the test accessories concept.
• The Company plans to continue its investment in inventory and expects to end the Spring season with double-digit increases, including higher levels of inventory in the important pant category.
• Capital expenditures are expected to range between $10.0 million and $13.0 million for the second quarter of fiscal year 2010, as compared to $3.2 million in the same period of the prior year. The Company plans to open 12 to 16 new stores, remodel three to seven existing locations, and close six to 10 stores, ending the first half of fiscal year 2010 with approximately 585 stores.
• The Company does not anticipate the need to use the credit facility during the second quarter of fiscal year 2010.
New York & Company, Inc., founded in 1918, is a leading specialty retailer of fashion oriented, moderately priced women's apparel. The Company's proprietary branded New York & Company merchandise is sold exclusively through its national network of retail stores and e-commerce store. The Company currently operates 579 stores in 43 states.
New York & Company Inc
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