New York – New York & Company Inc. swung to a net loss of $300,000 in the first quarter of fiscal 2014 from net income of $1.6 million in the first quarter of the previous fiscal year. Net sales were $219.6 million, down 4% from $227.5 million, and same-store sales declined 2.2%.
During the second quarter, New York & Company plans to open approximately four new outlet stores, remodel four existing locations, and close one store, ending the second quarter of fiscal year 2014 with roughly 509 stores, including 57 outlet stores. Net sales for the second quarter of fiscal year 2014 are expected to increase slightly from the prior year, and same-store sales are expected to be flat to up slightly for the second quarter.
The elimination of a one-time tax benefit from the prior year helped swing New York & Co. to a net loss, while the closure of 12 stores dampened net sales.
“While top-line sales were softer than anticipated, comparable store sales improved during the latter portion of the quarter,” said Gregory Scott, CEO of New York & Company. “We were especially encouraged that in a tough retail environment we achieved positive comparable store sales in our e-commerce business and in stores in the western part of the country, as well as Florida. We also continue to see great success with the Eva Mendes Collection, particularly in dresses and skirts.”