New York & Company swings to profit in Q4
New York & Company reported a strong fourth quarter amid rising online sales and a boost from celebrity collaborations.
The apparel retailer posted a net profit of $4.75 million, or $.07 a share, for the quarter (which included an extra week), compared to a loss of $9.9 million in the year-ago period.
Sales rose to $278.7 million, which included $7.1 million of royalty and related revenue from a private label credit card agreement, from $266.3 million last year. Same-store sales rose 3%. The increase was largely driven by a double-digit percentage increase in the company’s e-commerce business, combined with increased royalty and related revenue from the private label credit card agreement.
On the chain’s quarterly conference call, CEO Greg Scott said the company’s online business had more than doubled during the past three years, and now accounts for 31% of total volume. He also addressed the power of celebrity. New York & Company has partnerships with Eva Mendes and Gabrielle Union, with both creating lines for the retailer.
“We are continuing to see customers respond to our celebrity collaborations,” he said.
In a statement, Scott said the company, which operates 432 stores, “has made significant progress toward our long-term goals, particularly evolving to a lifestyle brand, becoming a digitally dominant retailer and delivering improved profitability.
Looking ahead, Scott said the company will be integrating its newest brand, Fashion to Figure, into the New York & Company portfolio, which will allow the company to capitalize on the plus-size market.
The retailer acquired certain assets, including all intellectual property, of Fashion to Figure in November 2017. Although all lease obligations remained with the seller, New York & Company negotiated satisfactory new agreements to enable it to relaunch eight key Fashion to Figure locations. The company also relaunched business through its e-commerce platform in early February.
For fiscal year 2018, New York & Company expects to close 35 stores to 45 stores, ending the fiscal year with roughly 401 stores to 411 stores.
The apparel retailer posted a net profit of $4.75 million, or $.07 a share, for the quarter (which included an extra week), compared to a loss of $9.9 million in the year-ago period.
Sales rose to $278.7 million, which included $7.1 million of royalty and related revenue from a private label credit card agreement, from $266.3 million last year. Same-store sales rose 3%. The increase was largely driven by a double-digit percentage increase in the company’s e-commerce business, combined with increased royalty and related revenue from the private label credit card agreement.
On the chain’s quarterly conference call, CEO Greg Scott said the company’s online business had more than doubled during the past three years, and now accounts for 31% of total volume. He also addressed the power of celebrity. New York & Company has partnerships with Eva Mendes and Gabrielle Union, with both creating lines for the retailer.
“We are continuing to see customers respond to our celebrity collaborations,” he said.
In a statement, Scott said the company, which operates 432 stores, “has made significant progress toward our long-term goals, particularly evolving to a lifestyle brand, becoming a digitally dominant retailer and delivering improved profitability.
Looking ahead, Scott said the company will be integrating its newest brand, Fashion to Figure, into the New York & Company portfolio, which will allow the company to capitalize on the plus-size market.
The retailer acquired certain assets, including all intellectual property, of Fashion to Figure in November 2017. Although all lease obligations remained with the seller, New York & Company negotiated satisfactory new agreements to enable it to relaunch eight key Fashion to Figure locations. The company also relaunched business through its e-commerce platform in early February.
For fiscal year 2018, New York & Company expects to close 35 stores to 45 stores, ending the fiscal year with roughly 401 stores to 411 stores.