New York & Company, Inc., a specialty apparel chain with 504 retail stores reported flat GAAP net loss over the same quarter of the previous fiscal in the second fiscal quarter ended August 1, 2015.
In a press release, the apparel retailer said its GAAP net loss for the second quarter of fiscal 2016 was $ 0.1 million, or $ 0.00 per diluted share, unchanged from the prior fiscal second quarter.
On a non-GAAP basis, the Company’s adjusted net income was $ 1.9 million or $ 0.03 per diluted share for the reporting quarter.
Net sales however went up 4.34 per cent to $ 235.7 million in the second quarter of current fiscal as compared to $ 226.1 million in the second quarter of fiscal 2015.
In the same period, comparable store sales increased 3.8 per cent year on year, following an increase of 2.3 per cent for the same period last fiscal.
Gross profit as a percentage of net sales increased 110 basis points versus the fiscal 2015 second quarter, principally due to improved leverage of buying and occupancy costs.
Selling, general and administrative expenses rose to $ 66.7 million as against $ 61.7 million in last fiscal’s same quarter and includes $ 2.0 million non-operating charges.
Excluding non-operating charges of $ 2.0 million, non-GAAP selling, general and administrative expenses were $ 64.7 million, as compared to $ 61.7 million in the second quarter of fiscal 2015.
“This increase reflects incremental investments in marketing to drive sales, increases in variable distribution costs associated with the growing ecommerce business,” the company explained.
GAAP operating income drove up and doubled at $ 0.4 million vis-à-vis GAAP operating income of $ 0.2 million in the comparable quarter of earlier fiscal.
On a non-GAAP basis, excluding $ 2.0 million of non-operating charges, adjusted operating income was $ 2.5 million, exceeding the high end of its previously issued guidance range of $ 1 million to $ 2 million.
Total quarter-end inventory increased 1.2 per cent year on year, which was below the company’s previously issued guidance on May 21, 2015, while in-store inventory increased 7.6 per cent.
Capital spending for the second quarter of fiscal 2016 was $ 7.3 million, up from 6.2 million from continued investments in information technology infrastructure, opening new stores and remodeling outlets.
The company opened two Outlet stores, closed two and remodeled four New York & Company stores during the quarter, ending the fiscal quarter with 504 stores, including 76 Outlet stores, and 2.6 million selling square feet.
The retailer ended the reporting period with $ 60.1 million of cash-on-hand and no outstanding borrowings under its revolving credit facility, as compared to $ 63.2 million of cash-on-hand at the end of last fiscal’s second quarter. (AR)