--~ Gross Margin Expected to Expand between 400 and 500 Basis Points ~
--~Operating Loss Projected to Narrow Significantly from LY ~
New York & Company, Inc. [NYSE:NWY], a specialty apparel chain with 537
retail stores in operation, today announced that based on
quarter-to-date performance and expectations for the balance of the
quarter it expects to exceed second quarter fiscal 2012 guidance.
The Company currently expects results for the second quarter ending July
28, 2012 to reflect the following:
Comparable store sales to be up slightly with quarter-end store count
reflecting six fewer stores in operation compared to the second
quarter of fiscal year 2011.
Gross margin to increase between 400 and 500 basis points from the
prior years second quarter rate primarily driven by improved product
costs combined with reductions in buying and occupancy expenses.
Selling, general and administrative expenses as a percentage of net
sales to increase approximately 100 basis points versus the prior
years second quarter reflecting investments in marketing, increases
in variable based compensation, and incremental spending necessary to
support the Companys growing eCommerce and Outlet businesses.
Operating loss to be in the range of $5 million to $7 million versus
an operating loss of $15.1 million in the year-ago period.
Total quarter-end inventories are expected to be down slightly versus
the prior year. Inventory per average store is expected to be
approximately flat to last year.
Gregory Scott, New York & Companys CEO, stated: "We are encouraged by
our second quarter performance to date which reflects strong product
acceptance across our summer assortments, particularly during the
Mothers Day period, and continued progress on our strategic
initiatives. As a result, we expect to significantly narrow our second
quarter operating loss from last year."
The Company continues to cite its six keys to success as its drivers
toward improved fiscal 2012 results. These include: maximizing sales and
profitability particularly during peak traffic times of the year;
increasing its marketing efforts to grow traffic in stores and on-line;
maintaining dominance in wear-to-work, while redefining its casual
assortment; improving average unit cost; optimizing its real estate
portfolio; and expanding its growing eCommerce and Outlet businesses.
Further commentary on second quarter results and the Companys outlook
for the third quarter will be provided as part of the Companys
regularly scheduled second quarter earnings release and conference call
during the third week of August 2012.
About New York & Company, Inc.
New York & Company, Inc. is a leading specialty retailer of womens
fashion apparel and accessories, and the modern wear-to-work destination
for women, providing perfectly fitting pants and NY Style that is
feminine, polished, on-trend and versatile--all at an amazing value. The
Companys proprietary branded New York & Company(R) merchandise is sold
exclusively through its national network of retail stores and eCommerce
store at www.nyandcompany.com.
The Company currently operates 537 retail stores in 43 states.
Additionally, certain product, press release and SEC filing information
concerning the Company are available at the Companys website: www.nyandcompany.com.
Note on Comparable Store Sales
A store is included in the comparable store sales calculation after it
has completed 13 full fiscal months of operations from the stores
opening date or once it has been reopened after remodeling if the gross
square footage did not change by more than 20%. Sales from the Companys
eCommerce store are included in comparable store sales.
This press release contains certain forward looking statements within
the meaning of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995. Some of these statements can
be identified by terms and phrases such as "expect" "anticipate,"
"believe," "intend," "estimate," "continue," "could," "may," "plan,"
"project," "predict", and similar expressions and include second quarter
fiscal 2012 guidance and references to assumptions that the Company
believes are reasonable and relate to its future prospects, developments
and business strategies. Such statements are subject to various risks
and uncertainties that could cause actual results to differ materially.
These include, but are not limited to: (i) the performance of the
Companys business for the remainder of its fiscal 2012 second quarter
ending July 28, 2012; (ii) the impact of general economic conditions and
their effect on consumer confidence and spending patterns; (iii) changes
in the cost of raw materials, distribution services or labor; (iv) the
potential for current economic conditions to negatively impact the
Companys merchandise vendors and their ability to deliver products; (v)
the Companys ability to open and operate stores successfully; (vi)
seasonal fluctuations in the Companys business; (vii) the Companys
ability to anticipate and respond to fashion trends; (viii) the
Companys dependence on mall traffic for its sales; (ix) competition in
the Companys market, including promotional and pricing competition; (x)
the Companys ability to retain, recruit and train key personnel; (xi)
the Companys reliance on third parties to manage some aspects of its
business; (xii) the Companys reliance on foreign sources of production;
(xiii) the Companys ability to protect its trademarks and other
intellectual property rights; (xiv) the Companys ability to maintain,
and its reliance on, its information technology infrastructure; (xv) the
effects of government regulation; (xvi) the control of the Company by
its sponsors and any potential change of ownership of those sponsors;
and (xvii) other risks and uncertainties as described in the Companys
documents filed with the SEC, including its most recent Annual Report on
Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company
undertakes no obligation to revise the forward looking statements
included in this press release to reflect any future events or
SOURCE: New York & Company, Inc.
New York & Company, Inc.
Director, Investor Relations