New York suffers Q4 loss as sales slump

US: New York suffers Q4 loss as sales slump

By Richard Woodard | 16 March 2012

Q4 net loss of US$10.9m, versus $14.9m profit
Net sales down 10.4% to $271.8m
High level of promotions reduces profitability

Women’s apparel retailer New York & Company posted a fourth quarter loss, impacted by a double-digit revenue decline and a 6.3% fall in comparable store sales.

Gross profit in the period ending 28 January fell by 730 basis points thanks to higher levels of promotional activity designed to drive traffic in the US company’s stores.

For the full year, net sales decreased 6.4% to $956.5m, while comps were down 3.3%, resulting in a net loss of $38.3m, down from a loss of $76.5m a year before.

“While we are disappointed with our fourth quarter results, fiscal 2011 was an important year for our company,” said New York & Company CEO Gregory Scott.

“We gained valuable insight about our customer, her lifestyle needs and what drives her purchasing decisions in terms of merchandise, fashion, price points and promotions – all while facing significant cost pressures within our supply chain.

“We have already begun applying these key learnings to our business planning in 2012.”

Sectors: Apparel, Finance, Retail

Companies: New York & Company