New York & Company announced results for the fourth quarter and fiscal year ended January 30, 2016. Q4 net sales were $271.3 million, as compared to $267.4 million in the prior year.
Article continues below
Comparable store sales increased 1.9% and total net sales increased by 1.5%.
Gross profit as a percentage of net sales increased 10 basis points to 25.7% versus the fiscal year 2014 fourth quarter gross profit percentage of 25.6%.
This improvement reflects a 130 basis point increase in product margins due to reduced product costs, a 110 basis point improvement in the leverage of buying and occupancy expense due to reductions in store occupancy costs and buying payroll offset by a 230 basis point increase in other cost of goods sold, principally shipping costs associated with the significant growth in the Company’s eCommerce sales.
Selling, general and administrative expenses were $69.2 million, as compared to $74.7 million in the prior year period. Excluding non-operating charges of $0.6 million and $6.4 million for the three months ended January 30, 2016 and January 31, 2015, respectively, selling, general and administrative expenses were $68.5 million, or 25.3% of net sales, as compared to $68.4 million, or 25.6% of net sales in the prior year.
The 30 basis point improvement in selling, general, and administrative expenses, excluding the non-operating charges, reflects reductions in performance-based compensation expenses and the reversal of amounts previously accrued, combined with decreases in marketing and payroll, partially offset by significant increases in variable expenses associated with the growth in eCommerce sales.
GAAP operating results improved by $7.0 million to income of $0.6 million, as compared to the prior year’s fourth quarter GAAP operating loss of $6.4 million.
On a non-GAAP basis, excluding $0.6 million of non-operating charges, adjusted operating income was $1.3 million, an improvement of $1.3 million from the prior year’s non-GAAP breakeven operating results, which excluded $6.4 million of non-operating charges.
GAAP net income for the fourth quarter of fiscal year 2015 was $0.1 million, or breakeven per diluted share. This compares to the prior year’s GAAP net loss of $6.7 million, or a loss of $0.11 per diluted share.
On a non-GAAP basis, the Company’s fourth quarter 2015 adjusted net income was $0.7 million, or $0.01 per diluted share. This compares to the prior year’s fourth quarter non-GAAP adjusted net loss of $0.4 million, or a loss of $0.01 per diluted share.
Full year 2015
Net sales were $950.1 million for fiscal year 2015, as compared to $923.3 million for fiscal year 2014. Comparable store sales increased 3.1%, as compared to a decrease of 1% in the prior fiscal year.
GAAP operating loss was $8.1 million. On a non-GAAP basis, adjusted operating loss was $0.3 million. This compares to a GAAP operating loss of $15.6 million and a non-GAAP, adjusted operating loss of $6.4 million for fiscal year 2014.
Net loss was $10.1 million, or a loss of $0.16 per diluted share. On a non-GAAP basis, adjusted net loss was $2.3 million, or a loss of $0.04 per diluted share. This compares to the prior fiscal year net loss of $16.9 million, or a loss of $0.27 per diluted share.
On a non-GAAP basis, prior fiscal year adjusted net loss was $7.7 million, or a loss of $0.12 per diluted share. ■