• Q4 net income soared to $14.9m
  • Sales rose 1.7% to $303.2m
  • Same-store sales increased 1.7% 

Higher sales and margins, tight control of inventories, and a tax gain have helped specialty apparel chain New York & Company Inc to a surge in fourth quarter profit.

The company, which operates 555 retail stores, said net income soared to $14.9m or $0.24 per share, from $2.5m or $0.04 per share a year earlier.
Sales in the three months to 29 January rose 1.7% to $303.2m, and same-store sales increased 1.7%.

“Our fourth quarter results reflect a strong focus on controlling inventory and improving our margins,” explained CEO Gregory Scott.

“We were successful in driving both sales and merchandise margin from last year through an improved product assortment, strong in-store promotional events and targeted direct marketing efforts. This, combined with leverage of our buying and occupancy costs, resulted in a significant improvement in our fourth quarter operating income versus last year.”

For the fiscal year, however, losses widened to $76.5m or $1.29 per share, from $13.5m or $0.23 per share the year before. Net sales edged up 1.5% to $1,021.7m, and comparable store sales increased 1.6%.