New York & Co. Posts 3Q Loss
New York City Specialty apparel chain New York & Co. reported a drop in third-quarter results. For the third quarter of fiscal 2008 ended Nov. 1, the company reported net sales of $249.0 million, down from $276.4 million for the same quarter last year.
Net loss from continuing operation was $8.0 million, compared to $5.3 million last year. This year’s loss includes a pre-tax charge of $2.5 million that is related to a management change.
Same–store sales fell 14.0%, compared to a 4.8% decrease in the prior year’s third quarter. The company reported that this drop includes shifting a key promotional program from the last week of the quarter into early November.
“While our third quarter financial performance is in line with our revised guidance, it is well below our original expectations,” said Richard P. Crystal, New York & Co.’s chairman and CEO.
“Our November sales trend has significantly improved vs. October, with the movement of our City Cash promotion and the introduction of our holiday floor set,” he said. “However, we are still cautious as we begin the holiday season and are preparing for a highly promotional environment.”
During the remainder of fiscal 2008, the company plans to have opened 25 stores, closed 15 stores and remodeled 14 stores, ending the fiscal year with 588 stores and 3.3 million sq. ft. of selling space in operation. The new stores will represent approximately 105,000 sq. ft. of selling space. Capital expenditures are estimated to be approximately $50.0 million in fiscal year 2008 vs. $75.5 million in fiscal year 2007.