New York & Co. Inc., which operates 426 stores and an e-commerce site, reported that its net income for the second quarter ended Aug. 4 slipped to $3.1 million from $4.8 million in the year-ago period.
The company said it exceeded its adjusted operating income guidance, which came in at $6.5 million, according to GAAP and non-GAAP operating income of $7.8 million, as compared with $1.3 million in GAAP operating income and $1.2 million in non-GAAP operating income in the prior year period.
Comparable sales rose 0.6 percent while there was slight dip in total sales to $216.4 million from $224 million in the year-ago period, due to a reduction in the store count and a shift of Mother’s Day sales into the first quarter.
Gregory Scott, New York & Co.’s chief executive officer, said, “We were very pleased with our strong operating results in the second quarter with positive comparable store sales, expansion in gross margin and operating profit, which significantly exceeded our guidance. This strong performance contributed to the success of our spring season, completing a successful first half of the year with operating income surpassing guidance and notable accomplishments toward our stated goals. Our results continue to demonstrate the successful execution of our strategy to evolve our operating platform to meet the needs of how consumers are shopping today while increasing efficiency across the enterprise. We believe the company is becoming a key omnichannel shopping destination with sought after celebrity brands, great style and great value.
“Moving into the second half of the year, earlier this week, we announced a multiyear partnership with Kate Hudson, which follows our already successful collaborations with Eva Mendes and Gabrielle Union — which provides us with another catalyst for growth and further differentiates and defines our company from peers,” Scott added.