Better year-over-year margins and a 3.8 percent same-store sales gain made adjusted operating results at New York & Co. higher than the company’s initial guidance.
As the company invests in its omnichannel and e-commerce strategy, sales rose 5.1 percent to $235.7 million in the second quarter from $236.1 million in the same period last year as the net loss was flat at about $146,000, or zero cents per share. The gross margin rate expanded 109 basis points to 28.48 percent from 22.39 percent.
Operating income jumped to $435,000 in the quarter from $180,000 in the prior year. On an adjusted basis, operating income rose by $2.3 million, said chief executive officer Gregory Scott in a statement.
Scott said the same-store sales gains accelerated in July “with the launch of our Jennifer Hudson Soho Jeans Collection and the overall quarterly results also were driven by the expansion of our omnichannel capabilities leading to significant growth in e-commerce and by increased traffic marking our fifth consecutive quarter of improved traffic growth.”
Scott reiterated that the retailer’s brand marketing and product strategies “are resonating with our core demographic. We also commenced the implementation of major strategic initiatives that are expected to drive significant efficiencies and cost savings for our company, providing us with a stronger platform from which to implement our growth plans.”
The retailer said its selling, general and administrative expenses climbed 8.1 percent to $66.7 million from $61.7 million in the same period last year. The company said results included $2 million of “nonoperating charges as the company continues on its path of becoming a leaner company.” Specifically, the charges relate to a workforce reduction at its corporate headquarters that was composed of severance charges, consulting fees and other related costs.
The company reported results after market. At the bell, shares of the retailer fell 3.7 percent to $2.11 on light trading volume.