New York & Co. (NWY) Misses Q1 EPS by 3c, Comps Increase 1.8%, Offers Outlook

New York & Co. (NYSE: NWY) reported Q1 EPS of ($0.03), $0.03 worse than the analyst estimate of $0.00. Revenue for the quarter came in at $223.4 million versus the consensus estimate of $229.09 million.

Outlook:

• Regarding expectations for the second quarter of fiscal year 2015, the Company is providing the following guidance:
• Net sales and comparable store sales are expected to increase by a low single-digit percentage versus last year.
• Gross margin is expected to increase by 100-200 basis points from the prior year’s second quarter rate reflecting improved product costs and improved leverage of buying and occupancy costs, partially offset by increased shipping costs associated with the growing omni-channel business.
• Selling, general and administrative expenses are expected to be up approximately $5 million from last year reflecting non-operating charges of approximately $1 million, which are primarily comprised of consulting related expenses due to the continuation of the business process re-engineering project. The increase in selling, general and administrative expenses reflects investments in marketing, anticipated increases in performance-based compensation accruals as compared to last year, increased rent expense for the Company’s new corporate headquarters and higher depreciation resulting from the increase in information technology investments, partially offset by savings recognized as a result of the Company’s organizational realignment. Selling, general and administrative expenses are expected to normalize during the second half of the year.
• On a non-GAAP basis, excluding the non-operating charges of $1 million, adjusted operating income is expected to be between $1 million and $2 million, reflecting an improvement from the prior year’s breakeven operating income.

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

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