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New York & Company, Inc. [NYSE:NWY], a specialty apparel chain with 519 retail stores, today announced results for the fourth quarter and full fiscal year ended February 2, 2013 (“fiscal year 2012”).
Fourth Quarter Fiscal Year 2012 Results:
Net sales were $291.8 million, as compared to $271.8 million in the year-ago period. The Company noted that fiscal year 2012 included 53 weeks versus 52 weeks in fiscal year 2011 with the additional week occurring in the fourth quarter.
Comparable store sales increased 2.3% compared to a decrease of 6.3% in the prior year fourth quarter. All comparable store sales figures are based on a 52-week comparable time period.
As previously disclosed, during the fourth quarter of fiscal year 2012, the Company determined it had adequate information on historical redemption patterns for merchandise credits and utilized this to revise its estimates of redemption rates and the period over which breakage income is recognized, which resulted in a $4.3 million benefit to net sales, gross margin, and operating income. All comparable store sales figures and “non-GAAP” figures referred to in this release exclude this benefit. Please refer to the “Reconciliation of GAAP to Non-GAAP Financial Measures” in Exhibit 5 of this press release.
Operating income was $10.6 million reflecting a significant improvement from the prior year’s fourth quarter operating loss of $10.8 million. On a non-GAAP basis, the Company’s adjusted operating income was $6.2 million. Operating income on a GAAP and non-GAAP basis exceeded the high-end of the Company’s increased guidance provided on February 12, 2013.
Net income increased to $10.5 million, or $0.17 per diluted share. On a non-GAAP basis, the Company’s adjusted net income was $6.2 million, or $0.10 per diluted share. This compares to a net loss in the prior year fourth quarter of $10.9 million, or $0.18 per diluted share.
The Company continued to provide for adjustments to the deferred tax valuation allowance offsetting any tax provisions or benefits resulting in a 0% effective tax rate.
Total year-end inventories were flat compared to last year-end.
The Company ended the year with $60.9 million of cash-on-hand with no outstanding borrowings under its credit facility.
Gregory Scott, New York & Company’s CEO, stated: “We capped fiscal year 2012 with solid fourth quarter results that included increased sales, positive comparable store sales, significant gross margin expansion and a dramatic improvement in our operating results. Our performance was driven by strong progress made against our strategic initiatives – our Six Keys to Success – which provides a strong foundation for us to continue to improve our operating results in 2013.”