New York & Co. (NWY) reported earnings Wed 2 Dec 2015 (a/h)

** charts before earnings **

** charts after earnings **

 

New York & Co misses by $0.04, beats on revs; Q4 sales guidance in-line :

• Reports Q3 (Oct) loss of $0.05 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus of ($0.01); revenues rose 4.5% year/year to $219.8 mln vs the $217.18 mln Capital IQ Consensus. 
• Comparable store sales increased 4.9%.

Q4 Outlook

• Net sales and comparable store sales are expected to increase by a low single-digit percentage (vs +2.7% Cap IQ estimate).
• Gross margin is expected to increase in the range of 50-150 basis points y/y reflecting improved product costs, decreases in markdowns, reductions in buying costs and improved leverage of occupancy costs, partially offset by increased shipping costs associated with the growing omni-channel business.
• Operating results on a GAAP basis for the fourth quarter of fiscal year 2015 are expected to improve significantly, reflecting operating income $1 -3 million.
• Total inventory is expected to increase in the low to mid single-digit percentage range, reflecting higher levels of in-store inventory as position inventory for the Spring selling period.
• Capital expenditures for the fourth quarter of fiscal year 2015 are projected to be between $6 million and $7 million, as compared to $5.8 mln year ago.