New York & Company's net loss from continuing operations for the 2nd qtr was $88.5 million

New York & Company, Inc., a specialty apparel chain with 581 retail stores, announced results for the second quarter ended July 31.

In an August 19 release, the company noted that, for the second quarter of fiscal year 2010, net sales were $243.3 million, as compared to $247.8 million for the second quarter of fiscal year 2009. Comparable store sales for the second quarter of fiscal year 2010 decreased 1.8 percent compared to a 16.4 percent decrease in the prior year second quarter.

Including certain non-operating charges noted below, the Company's U.S. Generally Accepted Accounting Principles ("GAAP") net loss from continuing operations for the second quarter of fiscal year 2010 was $88.5 million, or $1.49 per diluted share of which $1.00 per diluted share represents the non-cash charges as noted below. Excluding the non-operating charges, the Company's adjusted net loss from continuing operations was $29.3 million, or $0.49 per diluted share, as compared to a net loss from continuing operations in the prior year of $4.8 million, or $0.08 per diluted share....

....The Company's second quarter results were negatively impacted by higher levels of markdowns to clear inventory which was initially planned to a higher sales trend. The Company believes its inventory is now well positioned for the fall season and is pleased with the early positive responses received from customers to the new assortments....

...The Company continued the implementation of its new outlet store strategy, opening 11 new outlet stores during the quarter and ending with 16 outlet stores in operation that are meeting the Company's early expectations....

...Outlook

Regarding its expectations for the fall season (combined third and fourth quarters), the Company provided the following:

-Comparable store sales for the fall season of fiscal year 2010 are expected to be down slightly versus the year-ago period.

-Gross profit as a percentage of net sales for the fall season of fiscal year 2010 is expected to be flat to up slightly versus the prior year's levels, with improvements in the fourth quarter expected to offset flat to slightly lower gross margin levels in the third quarter.

SOURCE: Trading Markets

For the compete article with all the details click here.