New York & Company CEO disappointed with overall results
Comparable store sales for the nine-week period ended December 31, 2016 decreased approximately 1.7%; the company now expects comparable store sales for the full quarter to be down in the low single-digit percentage range.
The company detailed that with three weeks remaining in the quarter it now expects fourth quarter fiscal year 2016 operating results to reflect a loss of $2.5 million to a loss of $4.5 million.
Additionally, the company still expects inventory to be approximately flat, as compared to last fiscal year end. The company plans to report actual results for the fourth quarter and full fiscal year 2016 in March 2017.
Gregory Scott, New York & company’s CEO, stated: "While we are disappointed with our overall results, certain aspects of our business did perform well despite a challenging retail landscape, with soft traffic and a highly promotional environment. In the quarter we saw strength in our seasonal categories such as sweaters, outerwear, winter wear and lounge.
"We also continued to see success in the Eva Mendes Collection and dresses. This strength was offset by weakness in woven and knit tops, denim and jewelry, a key category for us during the holiday selling period.
"We also saw additional positives in the quarter including; the expansion of our credit loyalty program to all-time highs, the continued growth in our eCommerce business, and the ongoing success of our celebrity collaborations; however, traffic declines and soft sales during the quarter have caused us to increase markdowns, which have negatively impacted our fourth quarter results but ensures that we start the spring season clean.”
The company additionally noted that it now expects cash on hand at year end to be greater than $80 million versus $60 million last year, with no outstanding borrowings under its credit facility. ■
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