New York & Company announced results for the third quarter ended October 31, 2015. Net sales were $219.8 million, as compared to $210.3 million in the prior year.
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Comparable store sales increased 4.9% and total net sales increased by 4.5%.
Gross profit as a percentage of net sales increased 180 basis points versus the fiscal year 2014 third quarter principally due to reduced product costs, decreased buying expenses and improved leverage of fixed occupancy costs, partially offset by increased shipping costs associated with significant growth in the company’s eCommerce business.
Selling, general and administrative expenses were $68.6 million, as compared to $66.8 million in the prior year period. Included in fiscal year 2015 third quarter are $2.3 million of non-operating charges resulting primarily from the settlement of a wage and hour class action lawsuit in the state of California.
Excluding non-operating charges of $2.3 million and $2.8 million for the three months ended October 31, 2015 and November 1, 2014, respectively, selling, general and administrative expenses were $66.3 million, as compared to $64.0 million in the prior year.
The increase in selling, general, and administrative expenses is primarily attributable to increases in variable-based compensation accruals, increases in rent and depreciation and increased expenses associated with the growth in eCommerce and Outlets, partially offset by reductions in marketing and payroll.
GAAP operating loss was $4.9 million, as compared to the prior year’s third quarter GAAP operating loss of $9.5 million.
On a non-GAAP basis, excluding $2.3 million of non-operating charges, adjusted operating loss was $2.6 million, an improvement of $4.1 million from the prior year’s non-GAAP operating loss of $6.7 million, which excluded $2.8 million of non-operating charges.
GAAP net loss for the third quarter of fiscal year 2015 was $5.3 million, or $0.08 per diluted share. This compares to the prior year’s GAAP net loss of $9.7 million, or $0.15 per diluted share.
On a non-GAAP basis, the company’s third quarter 2015 adjusted net loss was $3.0 million, or $0.05 per diluted share. This compares to the prior year’s third quarter non-GAAP adjusted net loss of $6.9 million, or $0.11 per diluted share. ■