New York Company (NWY) swung to a net loss for the quarter ended Jan. 28, 2017. The company has made a net loss of $9.99 million, or $ 0.16 a share in the quarter, against a net profit of $0.08 million, or $0.16 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $3.79 million, or $0.06 a share compared with a net profit of $0.72 million, or $0.01 a share in the last year period. Revenue during the quarter went down marginally by 1.82 percent to $266.32 million from $271.27 million in the previous year period. Gross margin for the quarter expanded 171 basis points over the previous year period to 27.43 percent. Operating margin for the quarter stood at negative 3.46 percent as compared to a positive 0.23 percent for the previous year period.
Operating loss for the quarter was $9.22 million, compared with an operating income of $0.62 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $3.02 million compared to operating profit of $1.26 million in prior year period.
Gregory Scott, New York Companys chief executive officer stated: "In a rapidly changing retail environment, our fourth quarter results met the high-end of the updated outlook we issued in January and included a double-digit increase in eCommerce sales, strong results in our Eva Mendes Collection, and expansion in overall gross profit margin despite mall traffic declines that lowered sales. The year was highlighted by significant progress toward our four key initiatives that we believe position New York Company to improve its traffic trend through growth in celebrity and sub-brands that are exclusive to us, the expansion of our loyalty program and the introduction of marketing events that resonate more closely with our consumer demographic. At the same time, our inventories were well controlled with a double-digit decline, as compared to last year, and we also continued to optimize our real estate footprint and drive expense and cost reductions as part of our continuing efforts under our Project Excellence program.
Operating cash flow improves significantlyNew York Company has generated cash of $48.76 million from operating activities during the year, up 136.14 percent or $28.11 million, when compared with the last year. The company has spent $18.31 million cash to meet investing activities during the year as against cash outgo of $26.50 million in the last year.
The company has spent $3.52 million cash to carry out financing activities during the year as against cash outgo of $2.01 million in the last year period.
Cash and cash equivalents stood at $88.37 million as on Jan. 28, 2017, up 43.85 percent or $26.94 million from $61.43 million on Jan. 30, 2016.
Working capital increases sharply
New York Company has recorded an increase in the working capital over the last year. It stood at $59.59 million as at Jan. 28, 2017, up 41.76 percent or $17.55 million from $42.04 million on Jan. 30, 2016. Current ratio was at 1.43 as on Jan. 28, 2017, up from 1.31 on Jan. 30, 2016.
Debt comes down
New York Company has recorded a decline in total debt over the last one year. It stood at $12.33 million as on Jan. 28, 2017, down 6.39 percent or $0.84 million from $13.17 million on Jan. 30, 2016. Total debt was 4.09 percent of total assets as on Jan. 28, 2017, compared with 4.65 percent on Jan. 30, 2016. Debt to equity ratio was at 0.16 as on Jan. 28, 2017, up from 0.14 as on Jan. 30, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
