Earnings Review and Free Research Report: New York & Co.’s Net Income Rocketed 433.33%
Research Desk Line-up: American Eagle Outfitters Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 31, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on New York & Co., Inc. (NYSE: NWY), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NWY, following the Company's announcement of its financial results on August 17, 2017, for the second quarter fiscal 2017. The specialty women's apparel chain posted its highest gross margin and operating income since Q2 2005 and 2008, respectively. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
http://protraderdaily.com/register/
Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected American Eagle Outfitters, Inc. (NYSE: AEO) for due-diligence and potential coverage as the Company reported on August 23, 2017, its financial results for Q2 2017 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on American Eagle Outfitters when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NWY; also brushing on AEO. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=NWY
http://protraderdaily.com/optin/?symbol=AEO
Earnings Reviewed
For the second quarter ended July 29, 2017, New York & Co.'s net sales were $224.1 million, down 3.7% compared to $232.8 million in Q2 2016, reflecting growth in ecommerce, offset by the impact of a lower store count and decreased comparable store sales.
New York & Co.'s comparable store sales decreased 1.1%, reflecting double-digit percentage growth in ecommerce offset by decreases in comparable store sales in brick-and-mortar stores.
During Q2 2017, New York & Co.'s gross profit as a percentage of net sales increased 180 basis points to 30.6% versus 28.8% for Q2 2016, reflecting the highest gross margin rate achieved in the second quarter since 2005. The increase during the quarter reflects a 30 basis point increase in merchandise margin and a 150 basis point improvement in the leverage of buying and occupancy expenses.
During Q2 2017, New York & Co. reduced buying and occupancy costs by $5.3 million on a y-o-y basis, leading to a 150 basis points improvement in the leverage of these expenses despite lower sales. During the reported quarter, the Company recorded a non-operating benefit of $1.7 million, which represents the partial reversal of a legal reserve established for an alleged trademark infringement matter, partially offset by charges for strategic consulting services and executive management change costs.
New York & Co.'s GAAP operating income improved significantly to $5.2 million in Q2 2017 compared to $1.3 million, in Q2 2016. Excluding the $1.7 million net non-operating benefit, non-GAAP adjusted operating income in the reported quarter was $3.5 million.
New York & Co.'s GAAP net income was $4.8 million, or earnings of $0.08 per diluted share, for Q2 2017 compared to GAAP net income of $0.9 million, or earnings of $0.01 per diluted share, for Q2 2016. Excluding the net benefit of $1.7 million of non-operating adjustments, the reported quarter's adjusted net income was $3.1 million, or earnings of $0.05 per diluted share.
Store Update
New York & Co. opened 1 New York & Co.'s store and 2 new Outlet's stores, refreshed 3 New York & Co.'s stores, and closed 6 New York & Co.'s stores, ending the first quarter with 460 stores, including 125 Outlet's stores and 2.3 million selling square feet in operation.
Cash Matters
At the end of Q2 2017, New York & Co.'s total inventory fell 0.9% compared to the end of last year's second quarter, due to the lower store count combined with decreased levels of in-store inventory. The Company's capital expenditures were $2.6 million for the reported quarter compared to $7.4 million in the prior year's same quarter, primarily reflecting investments for two new stores with short-term leases under attractive terms, investments to refresh existing real estate, and investments in the Company's information technology infrastructure to support its growing omni-channel business.
New York & Co. ended the quarter with $76.0 million of cash on-hand, representing a $12.2 million increase to its Q2 2016 cash balance of $63.8 million. The cash on-hand balance of $76.0 million represents approximately $1.19 in cash per share and approximately $1.01 in cash per share, net of debt. The Company had no outstanding borrowings under its revolving credit facility.
Share Repurchase Activity:
During Q2 2017, New York & Co. repurchased 136,030 shares of its common stock and has repurchased a total of 831,199 shares under its existing share repurchase program. As of the end of the reported quarter, the Company had approximately $3.3 million of total availability remaining under its share repurchase program.
Outlook
For Q3 2017, New York & Co. is forecasting net sales and comparable store sales to be approximately flat. The Company is expecting gross margin to grow approximately 150 basis points to 200 basis points on a y-o-y basis. For Q3 2017, New York & Co.'s operating results are expected to be approximately breakeven to a loss of $1.0 million compared to an operating loss of $2.1 million in Q3 2016.
New York & Co.'s total inventory at the end of the third quarter is expected to increase in the low- to mid-single-digit percentage on a y-o-y basis, largely reflecting increases in eCommerce inventory and in-transit inventory. The Company's capital expenditures for the upcoming quarter are projected to be between $6 million and $8 million compared to $4.1 million of capital expenditures in the year earlier corresponding quarter.
During Q3 2017, New York & Co. expects to open 2 New York & Co.'s stores under short-term flexible leases, refresh 5 New York & Co.'s stores, and close 2 New York & Co.'s stores, ending the third quarter of fiscal year 2017 with 460 stores, including 125 Outlet's stores.
Stock Performance
On Wednesday, August 30, 2017, the stock closed the trading session at $1.80, dropping 3.74% from its previous closing price of $1.87. A total volume of 53.28 thousand shares have exchanged hands. New York & Co.'s stock price advanced 16.13% in the last one month and 20.00% in the past three months. The stock currently has a market cap of $113.29 million.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
