New York & Company, a specialty apparel chain, has declared results for the fourth quarter and fiscal year ended January 28, 2017. During the fourth quarter, net sales were US $ 266.3 million, which included US $ 5.4 million of royalty and related revenue from the new private label credit card agreement, as compared to US $ 271.3 million in the prior year.
Comparable store sales decreased 0.4 per cent as an increase in the company’s eCommerce business, combined with royalty and related revenue from its new private label credit card agreement were more than offset by sales declines in store locations.
During the fiscal year under review, the fashion retailer’s net sales were US $ 929.1 million for fiscal year 2016, as compared to US $ 950.1 million for fiscal year 2015. Comparable store sales decreased 0.7 per cent, as compared to an increase of 3.1 per cent in the prior fiscal year.
The company closed 11 New York & Company stores and 6 Outlet stores during the fourth quarter, ending the fourth quarter with 466 stores, including 123 Outlet stores and 2.4 million selling square feet in operation. In 2017, the company expects to open 2 new outlet stores, remodel/refresh 8 existing stores, open 6 to 10 stores in existing competitor retail space under flexible leases and close 36 stores, including 3 Outlet stores, ending the fiscal year with roughly 440 stores, including 122 Outlet stores, and approximately 2.2 million selling square feet.
Commenting on the results, Gregory Scott, New York & Company’s CEO stated, “In a rapidly changing retail environment, our fourth quarter results met the high-end of the updated outlook we issued in January and included a double-digit increase in eCommerce sales, strong results in our Eva Mendes Collection, and expansion in overall gross profit margin despite mall traffic declines that lowered sales,” adding, “As we begin, 2017, we expect to accelerate our progress toward our goals with continued growth in celebrity and sub-brands that will include the introduction of a new celebrity partnership launching in early April.”
For fiscal year 2017, net sales are expected to decline in the low single-digit percentage range, reflecting decreased store count, partially offset by approximately US $ 5.8 million of royalty and other revenue from the new private label credit card agreement and growth in the eCommerce business.