Market Overview

New York & Company, Inc. Announces Spring Season and Second Quarter Fiscal 2018 Results

Share:

~ Comparable Store Sales Increase of 1.7% for the Spring Season ~
~
Spring GAAP Operating Income of $6.5 Million Increasing $5.2 Million to
Last Year ~

~ Spring Non-GAAP Operating Income of $7.8
Million Exceeds Guidance of $5 Million to $6 Million ~

~
Reports $18.7 Million in Adjusted EBITDA for Spring Season ~

~
Reports $94.8 Million in Cash with no Debt Outstanding ~

New York & Company, Inc. (NYSE:NWY), a specialty apparel chain with 426
retail stores, today announced results for the Spring season and second
fiscal quarter of 2018 representing the 26 weeks and 13 weeks ended
August 4, 2018, respectively. Due to the 53-week year in fiscal 2017 the
prior year Spring season and second quarter periods ended July 29, 2017.

Gregory Scott, New York & Company's CEO stated: "We were very pleased
with our strong operating results in the second quarter with positive
comparable store sales, expansion in gross margin and operating profit
which significantly exceeded our guidance. This strong performance
contributed to the success of our Spring season, completing a successful
first half of the year with operating income surpassing guidance and
notable accomplishments toward our stated goals. Our results continue to
demonstrate the successful execution of our strategy to evolve our
operating platform to meet the needs of how consumers are shopping today
while increasing efficiency across the enterprise. We believe the
Company is becoming a key omni-channel shopping destination with sought
after celebrity brands, great style and great value.

"Moving into the second half of the year, earlier this week, we
announced a multi-year partnership with Kate Hudson which follows our
already successful collaborations with Eva Mendes and Gabrielle Union –
which provides us with another catalyst for growth and further
differentiates and defines our Company from peers," added Mr. Scott. "I
am excited about the opportunities that lie ahead and believe we remain
well-positioned to continue our positive performance in the Fall season,
which is further supported by our guidance that includes growth in
operating income versus the comparable Fall season last year despite
more difficult comparisons due to the prior year's 53rd week
calendar."

Spring Season and Second Quarter Fiscal Year 2018 Results (26-week
and 13-week periods ended August 4, 2018 compared to the 26-week and
13-week periods ended July 29, 2017):

Spring Season
For the Spring
season the Company exceeded its most recent adjusted operating income
guidance with GAAP operating income of $6.5 million and non-GAAP
operating income of $7.8 million, as compared to $1.3 million in GAAP
operating income and $1.2 million in non-GAAP operating income in the
prior year period. Contributing to this strong performance was a
comparable store sales increase of 1.7% for the season, margin expansion
to the highest levels since 2005, and diligent management of expenses.

Second Quarter
As it relates to
the second quarter of fiscal year 2018, the Company noted the following:

  • Net sales were $216.4 million, as compared to $224.1 million in the
    prior year. The decrease in net sales reflects a reduced store count
    and the shift of an important pre-Mother's Day week into the first
    quarter, which resulted from the shifted retail calendar due to the 53rd
    week in fiscal year 2017, and was partially offset by increased sales
    from Fashion to Figure.
  • Comparable store sales increased 0.6%, as compared to the same period
    last year, representing the fourth consecutive quarter of positive
    comparable store sales which was led by growth in the Company's
    eCommerce business and strength in outlet stores, and in particular,
    outlet conversion stores.
  • Gross profit as a percentage of net sales increased 150 basis points
    to 32.1% versus fiscal year 2017 second quarter gross profit
    percentage of 30.6%, reflecting the highest gross margin rate achieved
    in the second quarter since 2005. The increase during the quarter
    reflects a 160 basis point increase in merchandise margin, reflecting
    reduced product costs, decreased promotional activity and shipping
    efficiencies, partially offset by a 10 basis point decrease in the
    leverage of buying and occupancy costs due to lower gross sales.
  • Selling, general and administrative expenses were $66.3 million, or
    30.7% of net sales, as compared to $63.4 million, or 28.3% of net
    sales in the prior year period. The current year's quarterly results
    included $0.4 million of non-operating charges, primarily related to
    an ongoing trademark infringement matter and a class action lawsuit.
    The prior year included a benefit of $1.7 million related to these
    matters. On a non-GAAP basis, selling, general and administrative
    expenses were $65.9 million, or 30.4% of net sales, as compared to
    non-GAAP selling, general and administrative expenses of $65.1
    million, or 29.1% of net sales in the prior year. The increase during
    the quarter reflects increases in variable compensation accruals which
    are based upon operating profit results, partially offset by
    reductions in marketing expenses, and decreases in both store and home
    office payroll costs.
  • GAAP operating income for the second quarter of fiscal year 2018 was
    $3.1 million, as compared to $5.2 million in the prior year. However,
    as previously stated, the prior year included a non-operating benefit
    of $1.7 million, as compared to the current year which included a
    charge of $0.4 million. Excluding these non-operating adjustments,
    non-GAAP operating income was $3.5 million, which significantly
    exceeded our guidance of $0.7 million to $1.7 million and was flat to
    the prior year's non-GAAP operating income of $3.5 million despite the
    shift of a significant sales week into the first quarter of 2018 and
    the associated incremental gross margin contribution.
  • GAAP net income for the second quarter of fiscal year 2018 was $3.1
    million, or earnings of $0.05 per diluted share, as compared to $4.8
    million, or earnings of $0.08 per diluted share in the prior year. On
    a non-GAAP basis, the second quarter adjusted net income was $3.5
    million, or $0.05 per diluted share, as compared to $3.1 million, or
    $0.05 per diluted share last year.

Please refer to the "Reconciliation of GAAP to Non-GAAP Financial
Measures" in Exhibits 5 and 6 of this press release, which delineate the
non-operating adjustments for the three and six months ended August 4,
2018 and July 29, 2017. GAAP is defined as Generally Accepted Accounting
Principles in the United States.

Other Financial and Operational Highlights:

  • Total inventory at August 4, 2018 decreased 0.8%, as compared to July
    29, 2017, reflecting reduced inventory due to lower store count,
    partially offset by a slight increase to support the growing eCommerce
    business.
  • Capital expenditures for the Spring season of 2018 were $1.6 million,
    as compared to $4.7 million in the prior year period.
  • During the second quarter, the Company opened 1 Outlet store,
    converted 2 existing New York & Company stores to Outlet stores,
    closed 5 New York & Company stores and 2 Outlet stores, as well as
    remodeled/refreshed 3 existing locations ending the Spring season with
    426 stores, including 120 Outlet stores and 2.1 million selling square
    feet in operation.
  • The Company ended the Spring season with $94.8 million of cash
    on-hand, no outstanding borrowings under its revolving credit facility
    and no long-term debt.

Outlook:

Regarding expectations for fiscal year 2018, the Company continues to
focus on improving its operating results to drive increases in both
annual operating income and EBITDA. As previously disclosed, fiscal year
2017 included an extra week in the traditional retail calendar, which
contributed approximately $12 million of sales and related margin to the
prior year results. As such, the Fall season in 2018 includes one less
week of sales than the prior year period. As the Company enters the Fall
season, the combined effects of one less week, a shift in the calendar
resulting from the 53rd week in 2017 and the new revenue
recognition accounting standard will impact the overall seasonal results
as well as the individual quarterly results, and as such, the Company is
providing commentary on the overall Fall season, which combines the
third and fourth quarters of fiscal year 2018, in addition to more
detailed commentary on third quarter financial metrics.

For the Fall season, combined third and fourth quarter of fiscal year
2018, the Company expects comparable store sales to increase in the low
single-digit range, leading to improvements in operating results. The
Company expects GAAP operating income to be in the range of $5.5 million
to $7.5 million, which includes more than $2.0 million of incremental
costs to launch the Company's new celebrity collaboration, and
incremental costs to develop certain new businesses, as compared to the
prior year GAAP operating income of $5.6 million, which included the
benefit of one additional week of sales due to the 53-week year in 2017.

For the third quarter, the Company is expecting GAAP operating income of
$1 million to $2 million, as compared to a GAAP operating income of $0.6
million in the prior year.

The third quarter guidance reflects the following:

  • Net sales are expected to increase in the low single-digit percentage
    range, reflecting benefits from the shift of the retail calendar,
    combined with growth in eCommerce sales, partially offset by a reduced
    store count.
  • Comparable store sales, which are shifted to compare like calendar
    weeks, are expected to increase in the low single-digit percentage
    range, driven by celebrity collaborations, the introduction of Kate
    Hudson for Soho Jeans Collection and growth in the digital business.
  • Gross margin on a GAAP basis is expected to increase by 50 to 150
    basis points reflecting continued improvements in merchandise margins,
    resulting from decreased product cost and reduced promotional
    activity, combined with leverage of reduced buying and occupancy costs
    due to our continued expense control efforts.
  • Selling, general and administrative expenses on a GAAP basis are
    expected to increase by up to $2 million versus the prior year's third
    quarter. This reflects an increase in selling expenses driven by
    increases in eCommerce variable costs and marketing spending due to
    the Company's new celebrity collaboration, partially offset by reduced
    home office costs.

Additional Outlook:

  • Total inventory at the end of the third quarter is expected to
    increase in the low to mid single-digit range, as compared to the
    prior year, largely reflecting the shift in calendar with quarter end
    one week closer to the important holiday season.
  • Capital expenditures for the third quarter of fiscal year 2018 are
    projected to be approximately $4 million to $6 million, as compared to
    $3.1 million of capital expenditures in the third quarter of the prior
    year, reflecting continued investments in the Company's information
    technology and omni-channel infrastructure, and real estate
    remodel/refresh activity. For the full year, capital expenditures are
    projected to be $10 million to $11 million, as compared to $12.5
    million in capital expenditures in the prior year.
  • Depreciation expense for the third quarter of fiscal year 2018 is
    estimated to be approximately $5 million.
  • During the third quarter of fiscal year 2018, the Company expects to
    open 2 Fashion to Figure stores, open 3 New York & Company stores,
    remodel/refresh 3 existing stores, and close 1 New York & Company
    store and 1 Outlet store.

Comparable Store Sales:

A store is included in the comparable store sales calculation after it
has completed 13 full fiscal months of operations from the store's
opening date or once it has been reopened after remodeling if the gross
square footage did not change by more than 20%. Sales from the Company's
eCommerce store, including Fashion to Figure eCommerce sales, and
private label credit card royalties and related revenue are included in
comparable store sales. Fashion to Figure retail locations are not
included in comparable store sales calculations until they complete 13
full fiscal months of operation. In addition, in a year with 53 weeks,
sales in the last week of the year are not included in determining
comparable store sales.

Conference Call Information

A conference call to discuss second quarter and Spring 2018 results is
scheduled for today, Thursday, August 23, 2018 at 4:30 p.m. Eastern
Time. Investors and analysts interested in participating in the call are
invited to dial (877) 407-0784 and reference conference ID number
13682423 approximately ten minutes prior to the start of the call. The
conference call will also be web-cast live at www.nyandcompany.com.
A replay of this call will be available at 7:30 p.m. Eastern Time on
August 23, 2018 until 11:59 p.m. Eastern Time on August 30, 2018 and can
be accessed by dialing (844) 512-2921 and entering conference ID number
13682423.

As a supplement to this press release, slides with information regarding
the second quarter and Spring 2018 results and outlook for third quarter
2018 will also be available at: www.nyandcompany.com
at approximately 4:20 p.m. Eastern Time on Thursday, August 23, 2018.

About New York & Company

New York & Company, Inc. is an omni-channel women's fashion retailer
providing curated lifestyle solutions that are versatile, on-trend, and
stylish at a great value. The specialty retailer, first incorporated in
1918, has grown to now operate 426 retail and outlet locations in 36
states while also growing a substantial eCommerce business. Its branded
merchandise, including collaborations with Eva Mendes and Gabrielle
Union, is sold exclusively at these locations and online at www.nyandcompany.com.
Additionally, certain product, press releases and SEC filing information
concerning the Company are available at the Company's website: www.nyandcompany.com.

Forward-looking Statements
This press release contains
certain forward-looking statements, including statements made within the
meaning of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995. Some of these statements can
be identified by terms and phrases such as "expect," "anticipate,"
"believe," "intend," "estimate," "continue," "could," "may," "plan,"
"project," "predict," and similar expressions and references to
assumptions that the Company believes are reasonable and relate to its
future prospects, developments and business strategies. Such statements,
including information under "Outlook" and "Additional Outlook" above,
are subject to various risks and uncertainties that could cause actual
results to differ materially. These include, but are not limited to: (i)
the Company's dependence on mall traffic for its sales and the continued
reduction in the volume of mall traffic; (ii) the Company's ability to
anticipate and respond to fashion trends; (iii) the impact of general
economic conditions and their effect on consumer confidence and spending
patterns; (iv) changes in the cost of raw materials, distribution
services or labor; (v) the potential for economic conditions to
negatively impact the Company's merchandise vendors and their ability to
deliver products; (vi) the Company's ability to open and operate stores
successfully; (vii) seasonal fluctuations in the Company's business;
(viii) competition in the Company's market, including promotional and
pricing competition; (ix) the Company's ability to retain, recruit and
train key personnel; (x) the Company's reliance on third parties to
manage some aspects of its business; (xi) the Company's reliance on
foreign sources of production; (xii) the Company's ability to protect
its trademarks and other intellectual property rights; (xiii) the
Company's ability to maintain, and its reliance on, its information
technology infrastructure; (xiv) the effects of government regulation;
(xv) the control of the Company by its largest shareholder and any
potential change of ownership of the Company including the shares held
by its largest shareholder; and (xvi) other risks and uncertainties as
described in the Company's documents filed with the SEC, including its
most recent Annual Report on Form 10-K and subsequent Quarterly Reports
on Form 10-Q. The Company undertakes no obligation to revise the
forward-looking statements included in this press release to reflect any
future events or circumstances.

                 
Exhibit (1)
 

New York & Company, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations
(Unaudited)
 
(Amounts in thousands, except per share amounts)

Three months
ended
August 4, 2018

% of
net sales

Three months
ended
July 29, 2017

% of
net sales
Net sales $ 216,370 100.0 % $ 224,116 100.0 %
 
Cost of goods sold, buying and occupancy costs 146,996 67.9 % 155,555 69.4 %
 
Gross profit 69,374 32.1 % 68,561 30.6 %
 
Selling, general and administrative expenses 66,317 30.7 % 63,405 28.3 %
 
Operating income 3,057 1.4 % 5,156 2.3 %
 
Net interest (income) expense (217) (0.1) % 238 0.1 %
 
Income before income taxes 3,274 1.5 % 4,918 2.2 %
 
Provision for income taxes 207 0.1 % 95 %
 
Net income $ 3,067 1.4 % $ 4,823 2.2 %
 
 
Basic earnings per share $ 0.05 $ 0.08
 
Diluted earnings per share $ 0.05 $ 0.08
 
Weighted average shares outstanding:
Basic shares of common stock 63,749 63,216
Diluted shares of common stock 66,244 63,664
 
Selected operating data:
(Dollars in thousands, except square foot data)
Comparable store sales increase (decrease) 0.6 % (1.1) %
Net sales per average selling square foot (a) $ 101 $ 97
Net sales per average store (b) $ 503 $ 486
Average selling square footage per store (c) 4,974 5,028
Ending store count 426 460
       
(a)     Net sales per average selling square foot is defined as net sales
divided by the average of beginning and monthly end of period
selling square feet.
(b) Net sales per average store is defined as net sales divided by the
average of beginning and monthly end of period number of stores.
(c) Average selling square footage per store is defined as end of period
selling square feet divided by end of period number of stores.
 
                 
Exhibit (2)
 
New York & Company, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
 
(Amounts in thousands, except per share amounts)

Six months
ended
August 4, 2018

% of
net sales

Six months
ended
July 29, 2017

% of
net sales

Net sales $ 435,199 100.0 % $ 433,973 100.0 %
 
Cost of goods sold, buying and occupancy costs 295,864 68.0 % 300,990 69.4 %
 
Gross profit 139,335 32.0 % 132,983 30.6 %
 
Selling, general and administrative expenses 132,803 30.5 % 131,679 30.3 %
 
Operating income 6,532 1.5 % 1,304 0.3 %
 
Net interest (income) expense (195) % 517 0.1 %
 
Loss on extinguishment of debt 239 % %
 
Income before income taxes 6,488 1.5 % 787 0.2 %
 
Provision for income taxes 335 0.1 % 211 0.1 %
 
Net income $ 6,153 1.4 % $ 576 0.1 %
 
 
Basic earnings per share $ 0.10 $ 0.01
 
Diluted earnings per share $ 0.09 $ 0.01
 
Weighted average shares outstanding:
Basic shares of common stock 63,638 63,199
Diluted shares of common stock 65,824 63,713
 
Selected operating data:
(Dollars in thousands, except square foot data)
Comparable store sales increase (decrease) 1.7 % (0.9) %
Net sales per average selling square foot (a) $ 202 $ 186
Net sales per average store (b) $ 1,007 $ 939
Average selling square footage per store (c) 4,974 5,028
       
(a)     Net sales per average selling square foot is defined as net sales
divided by the average of beginning and monthly end of period
selling square feet.
(b) Net sales per average store is defined as net sales divided by the
average of beginning and monthly end of period number of stores.
(c) Average selling square footage per store is defined as end of period
selling square feet divided by end of period number of stores.
 
             
Exhibit (3)
 
New York & Company, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
 
(Amounts in thousands) August 4, 2018 February 3, 2018* July 29, 2017
(Unaudited) (Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 94,758 $ 90,908 $ 75,973
Accounts receivable 11,831 12,528 15,646
Income taxes receivable 55 115 115
Inventories, net 82,124 84,498 82,814
Prepaid expenses 17,233 16,447 18,524
Other current assets 1,963 1,924 1,731
Total current assets 207,964 206,420 194,803
 
Property and equipment, net 68,331 77,906 80,976
Intangible assets 16,969 17,125 14,879
Other assets 1,618 1,505 1,550
Total assets $ 294,882 $ 302,956 $ 292,208
Liabilities and stockholders' equity
Current liabilities:
Current portion—long-term debt $ $ 841 $ 841
Accounts payable 73,310 70,089 72,120
Accrued expenses 73,641 70,677 59,210
Income taxes payable 28
Total current liabilities 146,951 141,635 132,171
 
Long-term debt, net of current portion 10,644 11,064
Deferred rent 26,066 27,217 28,729
Other liabilities 33,649 36,599 39,930
Total liabilities 206,666 216,095 211,894
 
Total stockholders' equity 88,216 86,861 80,314
Total liabilities and stockholders' equity $ 294,882 $ 302,956 $ 292,208
 
*     Derived from the audited consolidated financial statements included
in the Company's Annual Report on Form 10-K for the fiscal year
ended February 3, 2018.
 
         
Exhibit (4)
 
New York & Company, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 

(Amounts in thousands)

Six months
ended
August 4, 2018

Six months
ended
July 29, 2017

 
Operating activities
Net income $ 6,153 $ 576
Adjustments to reconcile net income to net cash provided by (used
in) operating activities:
Depreciation and amortization 10,715 11,091
Loss from impairment charges 486 532
Amortization of intangible assets 156
Amortization of deferred financing costs 41 94
Write-off of unamortized deferred financing costs 239
Share-based compensation expense 1,186 982
Changes in operating assets and liabilities:
Accounts receivable 513 (3,809)
Income taxes receivable 60 29
Inventories, net 2,374 (4,770)
Prepaid expenses (786) 222
Accounts payable 3,221 4,052
Accrued expenses (2,835) (10,269)
Income taxes payable (28) (174)
Deferred rent (1,151) (1,310)
Other assets and liabilities   (2,085)   (3,012)
Net cash provided by (used in) operating activities   18,259   (5,766)
 
Investing activities
Capital expenditures (1,626) (4,711)
Insurance recoveries   184    
Net cash used in investing activities   (1,442)     (4,711)
 
Financing activities
Repayment of long-term debt (11,750) (500)
Principal payments on capital lease obligations (1,046) (821)
Repurchase of treasury stock (557)
Shares withheld for payment of employee payroll taxes   (171)   (41)
Net cash used in financing activities   (12,967)   (1,919)
 
Net increase (decrease) in cash and cash equivalents 3,850 (12,396)
Cash and cash equivalents at beginning of period   90,908   88,369
Cash and cash equivalents at end of period $ 94,758 $ 75,973
Non-cash capital lease transactions $ $ 818
 

Exhibit (5)

New York & Company, Inc. and Subsidiaries
Reconciliation
of GAAP to Non-GAAP Financial Measures

(Unaudited)

A reconciliation of the Company's GAAP to non-GAAP financial statement
information for the three months ended August 4, 2018 and July 29, 2017
is indicated below. This information reflects, on a non-GAAP basis, the
Company's adjusted operating results after excluding certain
non-operating adjustments. This non-GAAP financial information is
provided to enhance the user's overall understanding of the Company's
current financial performance. Specifically, the Company believes the
non-GAAP adjusted results provide useful information to both management
and investors by excluding expenses and credits that the Company
believes are not indicative of the Company's continuing operating
results. The non-GAAP financial information should be considered in
addition to, not as a substitute for or as being superior to, measures
of financial performance prepared in accordance with GAAP.

     

 

Three months ended August 4, 2018

(Amounts in thousands, except per share amounts)

Cost of goods
sold, buying
and occupancy
costs

    Gross profit    

Selling, general
and
administrative

expenses

   

Operating
income

    Net income    

Earnings
per diluted
share

GAAP as reported $ 146,996 $ 69,374 $ 66,317 $ 3,057 $ 3,067 $ 0.05

Adjustments affecting comparability

Reversal of certain severance and

employee relocation accruals

(33)

(33)

(135)

(168)

(168)

Consulting expense 165 165 165
Legal expenses       412 412   412  
Total adjustments (1)   (33)   (33)   442 409   409  

Non-GAAP as adjusted

$ 147,029 $ 69,341 $ 65,875 $ 3,466 $ 3,476 $ 0.05
 
     

 

Three months ended July 29, 2017

(Amounts in thousands, except per share amounts)

Cost of goods
sold, buying
and occupancy
costs

    Gross profit    

Selling, general
and
administrative
expenses

   

Operating
income

    Net income    

Earnings
per diluted
share

GAAP as reported $ 155,555 $ 68,561 $ 63,405 $ 5,156 $ 4,823 $ 0.08

Adjustments affecting comparability

Certain executive relocation expense 401 401 401
Consulting expense 519 519 519

Legal expenses, net of accrual reversal

(trademark infringement case)

 

 

  (2,623) (2,623)   (2,623)  
Total adjustments (1)       (1,703) (1,703)   (1,703)   (0.03)

Non-GAAP as adjusted

$ 155,555 $ 68,561 $ 65,108 $ 3,453 $ 3,120 $ 0.05
 
       
(1)     The tax effect of the $0.4 million and $1.7 million of non-operating
adjustments during the three months ended August 4, 2018 and July
29, 2017, respectively, is offset by a full valuation allowance
against deferred tax assets.
 

Exhibit (6)

New York & Company, Inc. and Subsidiaries
Reconciliation
of GAAP to Non-GAAP Financial Measures

(Unaudited)

A reconciliation of the Company's GAAP to non-GAAP financial statement
information for the six months ended August 4, 2018 and July 29, 2017 is
indicated below. This information reflects, on a non-GAAP basis, the
Company's adjusted operating results after excluding certain
non-operating adjustments. This non-GAAP financial information is
provided to enhance the user's overall understanding of the Company's
current financial performance. Specifically, the Company believes the
non-GAAP adjusted results provide useful information to both management
and investors by excluding expenses and credits that the Company
believes are not indicative of the Company's continuing operating
results. The non-GAAP financial information should be considered in
addition to, not as a substitute for or as being superior to, measures
of financial performance prepared in accordance with GAAP.

     

 

Six months ended August 4, 2018

(Amounts in thousands, except per share amounts)

Cost of goods
sold, buying
and occupancy
costs

   

Gross profit

   

Selling, general
and
administrative
expenses

   

Operating
income

   

Net income

   

Earnings
per diluted
share

GAAP as reported $ 295,864 $ 139,335 $ 132,803 $ 6,532 $ 6,153 $ 0.09

Adjustments affecting comparability

Certain severance expense 286 286 352 638 638
Reversal of certain employee relocation accruals (135) (135) (135)
Consulting expense 192 192 192
Legal expenses       552 552   552  
Total adjustments (1)   286   286   961 1,247   1,247   0.02

Non-GAAP as adjusted

$ 295,578 $ 139,621 $ 131,842 $ 7,779 $ 7,400 $ 0.11
 
     

 

Six months ended July 29, 2017

(Amounts in thousands, except per share amounts)

Cost of goods
sold, buying
and occupancy
costs

    Gross profit    

Selling, general
and
administrative
expenses

   

Operating
income

    Net income    

Earnings
per diluted
share

GAAP as reported $ 300,990 $ 132,983 $ 131,679 $ 1,304 $ 576 $ 0.01

Adjustments affecting comparability

Certain severance expenses 548 548 548 548
Certain executive relocation expense 401 401 401
Consulting expense 1,081 1,081 1,081

Legal expenses, net of accrual reversal

(trademark infringement case)

 

 

  (2,153) (2,153)   (2,153)  
Total adjustments (1)   548   548   (671) (123)   (123)   (0.00)

Non-GAAP as adjusted

$ 300,442 $ 133,531 $ 132,350 $ 1,181 $ 453 $ 0.01
 
       
(1)     The tax effect of $1.2 million and $0.1 million of non-operating
adjustments during the six months ended August 4, 2018 and July 29,
2017, respectively, is offset by a full valuation allowance against
deferred tax assets.
 

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