New York & Co comparable sales and profit helped by private label credit card
New York & Company reported its second quarter results on Friday. Net sales decreased to $232.8 million from $235.7 million in the prior year and comparable sales increased 0.3%. The comparable sales were at the high end of the company’s guidance due primarily to the company’s e-commerce business and revenue related to its private label credit card agreement.
The private label credit card agreement also had a positive impact on the gross profit for the quarter, which increased 30 basis points to 28.8% from 28.5% in the prior year.
Gregory Scott, New York & Company’s CEO stated that the company entered a new ten-year agreement with Alliance Data Services Corporation for the private label credit card. “We expect this new agreement to allow us to further drive brand loyalty and private label credit card sales,” he said. “We continue to expect our successful strategy to position New York & Company for increased sales productivity and profitability during the balance of the year.”
SG&A expenses were $65.7 million compared to $66.7 million in the previous year, and GAAP operating income increased to $1.3 million from $0.4 million. GAAP net income was $0.9 million, or $0.01 per diluted share, compared to the prior year’s GAAP net loss of $0.1 million.
Scott added, “Our second quarter sales performance accelerated from the trend we experienced in Q1 and early May, which we attribute to more seasonal weather, enhanced flexibility within our go to market process, our targeted marketing efforts, and the ongoing benefits from our omni-channel and credit card loyalty initiatives. During the quarter, we experienced strong trends across our seasonal categories of dresses, shorts and tops while continuing to drive strong sales growth from our Eva Mendes and Jennifer Hudson celebrity collaborations.”
For fiscal year 2016, New York & Company expects net sales and comparable sales to be flat or up in the low single-digit range.
Copyright © 2022 FashionNetwork.com All rights reserved.