For the fourth quarter and fiscal year ended January 31, 2015, net sales at New York & Company, a specialty apparel chain with 504 retail stores slipped marginally year over year.
In a press release, New York & Company said net sales for the fourth quarter of fiscal 2015 were $267.4 million, as compared to $271.0 million in the prior fiscal fourth quarter.
In the same quarter, comparable store sales decreased 0.9 per cent, following an increase of 1.2 per cent for the same period last fiscal.
Gross profit as a percentage of net sales declined 280 basis points versus the fiscal 2014 fourth quarter due to increased promotional activity and freight costs, offset by an improvement in product costs.
During the quarter, it incurred $6.4 million charges, which include $3.2 million of duplicative rent expense and other moving expenses related to the relocation of the Company’s corporate headquarters.
It also incurred $2.3 million of severance expenses and $0.7 million of consulting fees in connection with the re-engineering program initiated during the third quarter and a $0.2 million legal settlement.
This resulted in $6.4 million of incremental selling, general and administrative expenses in the fourth quarter of fiscal 2015 and contributed to the retailer generating a net loss in the period.
Selling, general and administrative expenses on a GAAP basis increased by approximately $4.9 million, as compared to the prior year period reflecting $6.4 million of non-operating charges previously noted.
This was however, partially offset by $1.5 million in savings primarily related to a reduction in performance-based compensation expense.
GAAP operating loss was $6.4 million and on a non-GAAP basis, adjusted operating loss was breakeven, as compared to the prior year’s fourth quarter GAAP operating income of $7.2 million.
GAAP net loss for the fourth quarter of the quarter under review reached $6.7 million, or a loss of $0.11 per diluted share.
On a non-GAAP basis, the Company’s adjusted net loss was $0.4 million, or a loss of $0.01 per diluted share as against GAAP net income of $6.9 million, or earnings per diluted share of $0.11.
Total quarter-end inventory increased 12.4 per cent as against at end of last year’s fourth quarter, reflecting significantly higher levels of in-transit inventory and a slight increase in in-store inventory.
“In-transit inventories rose significantly due to the longer lead times associated with the Company’s contingency plans surrounding the ongoing port delays,” New York & Company added.
Capital spending for the quarter was $5.8 million from $6.2 million in last year’s fourth quarter from investments in IT infrastructure and the build-out of corporate headquarters.
The Company closed 8 stores during the fourth quarter, ending the fiscal with 504 stores, including 62 Outlet stores, and 2.6 million selling square feet in operation.
