New York & Company, Inc., a specialty women’s apparel chain, has recorded net sales of $224.1 million for the second quarter of 2017, down 3.7 per cent as compared to $232.8 million in Q2 of previous year. This reflects growth in e-commerce, offset by the impact of a lower store count (460 this year versus 486 last year) and decreased comparable store sales.
The company’s comparable sales decreased 1.1 per cent, reflecting double-digit percentage growth in e-commerce offset with decrease in comparable store sales in brick-and-mortar stores. Gross profit as a percentage of net sales increased 30.6 per cent versus 28.8 per cent for the fiscal year 2016 second quarter, reflecting the highest gross margin rate achieved in the second quarter since 2005. For the reported period, GAAP operating income was $5.2 million, improvement by $3.8 million compared to last year for the same period.
For the third quarter of fiscal 2017, net sales and comparable store sales are expected to be approximately flat. The operating results are expected to be approximately breakeven to a loss of $1.0 million, as compared to an operating loss of $2.1 million in the prior year’s third quarter.