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E-commerce biz produces strong results - New York & Co
18 Mar '11
5 min read
• In fiscal year 2010, the Company opened 22 new stores, remodeled eight existing stores and closed 43 stores, ending the year with 555 stores, including 24 outlet stores, and 3.0 million selling square feet in operation.
For fiscal year 2010, net sales were $1,021.7 million, as compared to $1,006.7 million for fiscal year 2009, and comparable store sales increased 1.6% for fiscal year 2010 versus a decline of 11.8% in fiscal year 2009. Net loss from continuing operations was $76.5 million, or $1.29 per diluted share for fiscal year 2010, which includes certain non-operating adjustments, as noted in Exhibit 5, totaling a loss of $0.81 per diluted share. This compares to a net loss from continuing operations of $0.23 per diluted share for fiscal year 2009, which includes a previously disclosed non-operating loss of $0.03 per diluted share related to restructuring charges.
Outlook
Regarding its expectations for the first quarter of fiscal year 2011, the Company provided the following:
• Comparable store sales for the first quarter of fiscal year 2011 are expected to be in the positive low single-digit range with 551 stores in operation at the end of the first quarter as compared to 579 in the prior year.
• Gross profit margins are expected to improve by 100 to 175 basis points versus the prior year's rates.
• Selling, general and administrative expenses as a percentage of net sales are expected to be approximately flat versus the prior year.
• Operating loss is expected to narrow from the operating loss of $8.7 million incurred in the year-ago period.
• The Company expects the effective tax rate for the first quarter of fiscal year 2011 to be 0% as compared to an effective tax rate of 45.3% in the prior year. As previously announced, the Company continues to provide for adjustments to the deferred tax valuation allowance recorded in the second quarter of fiscal year 2010 offsetting any future tax provisions or benefits resulting in a 0% effective tax rate for GAAP purposes.
• The Company expects inventory levels at the end of the first quarter of fiscal year 2011 to be down approximately 10% as compared to the prior year.
• Capital expenditures are expected to be approximately $4.3 million for the first quarter of fiscal year 2011, as compared to $3.9 million in the prior year. Depreciation expense for the period is estimated at $10.2 million.
• The Company has no outstanding borrowings under its revolving credit facility and does not anticipate the need to use the facility during the first half of fiscal year 2011.
• The Company expects to close four stores and remodel two existing locations, ending the first quarter of fiscal year 2011 with 551 stores, including 24 outlet stores.
New York & Company, Inc. is a leading specialty retailer of women's fashion apparel and accessories known for offering the latest NY Style.
For fiscal year 2010, net sales were $1,021.7 million, as compared to $1,006.7 million for fiscal year 2009, and comparable store sales increased 1.6% for fiscal year 2010 versus a decline of 11.8% in fiscal year 2009. Net loss from continuing operations was $76.5 million, or $1.29 per diluted share for fiscal year 2010, which includes certain non-operating adjustments, as noted in Exhibit 5, totaling a loss of $0.81 per diluted share. This compares to a net loss from continuing operations of $0.23 per diluted share for fiscal year 2009, which includes a previously disclosed non-operating loss of $0.03 per diluted share related to restructuring charges.
Outlook
Regarding its expectations for the first quarter of fiscal year 2011, the Company provided the following:
• Comparable store sales for the first quarter of fiscal year 2011 are expected to be in the positive low single-digit range with 551 stores in operation at the end of the first quarter as compared to 579 in the prior year.
• Gross profit margins are expected to improve by 100 to 175 basis points versus the prior year's rates.
• Selling, general and administrative expenses as a percentage of net sales are expected to be approximately flat versus the prior year.
• Operating loss is expected to narrow from the operating loss of $8.7 million incurred in the year-ago period.
• The Company expects the effective tax rate for the first quarter of fiscal year 2011 to be 0% as compared to an effective tax rate of 45.3% in the prior year. As previously announced, the Company continues to provide for adjustments to the deferred tax valuation allowance recorded in the second quarter of fiscal year 2010 offsetting any future tax provisions or benefits resulting in a 0% effective tax rate for GAAP purposes.
• The Company expects inventory levels at the end of the first quarter of fiscal year 2011 to be down approximately 10% as compared to the prior year.
• Capital expenditures are expected to be approximately $4.3 million for the first quarter of fiscal year 2011, as compared to $3.9 million in the prior year. Depreciation expense for the period is estimated at $10.2 million.
• The Company has no outstanding borrowings under its revolving credit facility and does not anticipate the need to use the facility during the first half of fiscal year 2011.
• The Company expects to close four stores and remodel two existing locations, ending the first quarter of fiscal year 2011 with 551 stores, including 24 outlet stores.
New York & Company, Inc. is a leading specialty retailer of women's fashion apparel and accessories known for offering the latest NY Style.
New York & Company Inc
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