New York & Company Posts Q4 Loss

New York & Co. NWY posted a loss in the fourth quarter on Thursday. The New York-based company posted a quarterly loss of $6.7 million, or $0.11 per share, compared to a profit of $6.9 million, or $0.11 per share, in the year-ago quarter. Excluding one-time charges, the company posted a loss of $0.01 per share. Its revenue declined 1.3 percent to $267.4 million from $271.0 million. However, analysts were expecting earnings of $0.00 per share on revenue of $267 million. Its comparable-store sales slipped 0.9 percent in the quarter, versus a 1.2 percent gain in the year-ago period. On a non-GAAP basis, adjusted selling, general and administrative expenses dropped to 25.6 percent as a percentage of net sales, from 25.7 percent. Capital spending for the fourth quarter slipped to $5.8 million, from $6.2 million in the year-ago quarter. During the quarter, the company closed 8 stores. Total quarter-end inventory rose 12.4 percent versus the end of year-ago quarter. Gregory Scott, New York & Company's CEO, said, "Our fourth quarter performance was in line with the updated guidance we provided in January reflecting soft demand for seasonal products, including outerwear, sweaters, scarves and hats, which when 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. Despite these challenges we were however, very pleased to advance our omni-channel initiatives with 'Buy Online Pick Up in Store' and 'Buy Online Ship from Store' which contributed to significant growth in our eCommerce business." For the current quarter, the company projects sales growth in the low single-digit percentage. Analysts had expected sales growth of 1 percent to $222 million. New York & Co. shares finished up 1.36 percent at $2.23 during regular trading hours.