New York & Company exceeds expectations in first quarter, ups guidance
Specialty apparel chain New York & Company, Inc. announced its Q1 2018 results on Thursday, reporting increases in both sales and earnings driven by a particularly strong e-commerce performance, leading the company to increase its spring guidance.
The company’s operating income exceeded its highest guidance, increasing to $4.3 million, compared to the operating loss of $3.9 million reported in the first quarter of 2017.
Net income totaled $3.1 million, rising $7.3 million from the net loss of $4.2 million posted in the prior year period.
These improvements were driven by a rise in net sales, which came to $218.8 million, compared to $209.9 million in Q1 2017. The company’s net sales in the period were led by strong growth in its e-commerce business but were also positively impacted by the fiscal calendar shift that occurred due to the 53rd week in fiscal 2017.
Sales were also pushed by the company’s recently acquired plus-size brand Fashion to Figure, which was relaunched in February with the opening of eight stores and its launch on New York & Company’s e-commerce platform.
Comparable store sales increased 2.7% in the period thanks to growth in both the company’s brick-and-mortar and online retail channels.
“We attribute our consistent performance to the successful execution of our strategy, focused on expanding our exclusive celebrity brand offerings that differentiates New York & Company from peers and resonates well with our demographic, increasing digital marketing, growing our loyalty base, leveraging our omni-channel capabilities, gaining efficiencies from Project Excellence, and adding new growth opportunities in support of our long-term growth,” stated New York & Company CEO Gregory Scott in a release, before going on to highlight the role of the company’s partnerships with Eva Mendes and Gabrielle Union in its first quarter results.
Moving forward, comparable store sales are expected to rise in the low single-digit percentage range over the full spring season, while adjusted EBITDA is now expected to be in the range of $17 million to $18 million, compared to $12.3 million in spring 2017.
New York & Company currently operates 432 stores and is expecting to close a net total of 4 locations in the second quarter.
The company also plans to add a third celebrity brand to its Soho jeans sub-brand later this year.
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