New York & Co. (NWY) Tops Q2 EPS by 1c

August 18, 2016 4:16 PM EDT

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New York & Co. (NYSE: NWY) reported Q2 EPS of $0.01, $0.01 better than the analyst estimate of $0.00. Revenue for the quarter came in at $232.8 million versus the consensus estimate of $226.92 million.


Regarding expectations for the third quarter of fiscal year 2016, the Company is providing the following guidance:

  • Net sales and comparable store sales are expected to be flat to up in the low single-digit range.
  • Gross margin is expected to be up by approximately 50 basis points to 150 basis points reflecting benefits from our new private label credit card agreement, reductions in product costs and agent expenses resulting from Project Excellence, and reductions in occupancy costs, partially offset by increased shipping costs associated with the growing omni-channel business.
  • Selling, general and administrative expenses on a GAAP basis are expected to increase by approximately $1 million to $2 million versus the prior year’s third quarter, reflecting an increase in marketing (partially due to a shift in benefits from our new private label credit card agreement to revenue, as compared to the prior year which reflected these benefits as a reduction of marketing expense), and an increase in selling expenses largely driven by increases in eCommerce variable costs, partially offset by the elimination of non-operating charges which occurred in the prior year.
  • While operating results on a GAAP basis for the third quarter of fiscal year 2016 are expected to reflect a loss, the Company anticipates that the results will improve from the prior year operating loss of $4.9 million.

Additional Outlook:

  • Total inventory at the end of the third quarter is expected to be approximately flat to the prior year third quarter.
  • Capital expenditures for the third quarter of fiscal year 2016 are projected to be between $8 million and $9 million, as compared to $6.8 million of capital expenditures in the third quarter of last year.
  • Depreciation expense for the third quarter of fiscal year 2016 is estimated to be approximately $6 million.
  • During the third quarter, the Company expects to open 1 New York & Company store and close 3 New York & Company stores, ending the third quarter of fiscal year 2016 with 484 stores, including 131 Outlet stores. For the fourth quarter of fiscal year 2016, the C

For earnings history and earnings-related data on New York & Co. (NWY) click here.

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