Online sales grew by double digits in 2016 for New York & Co. Inc., while overall sales are sliding, and that means the retail chain is going to close about three dozen stores.
Online now accounts for more than 25% of the apparel and accessories retailer’s overall sales, CEO Greg Scott told analysts last week on New York & Co.’s fiscal fourth quarter earnings call. Based on overall sales figures of $929.1 million in fiscal 2016 ended Jan. 28, that would mean New York & Co. generated at least $232.3 million in online sales during the year.
“We continue to experience double-digit growth in e-commerce, benefiting from a combination of enhancements we’ve made and continue to make to our web platform,” chief operating officer John Worthington said on the call, according to a transcript from Seeking Alpha. Worthington did not specify which enhancements have been made or are underway.
New York & Co., No. 217 in the Internet Retailer 2016 Top 500 Guide, said it plans to decrease its store count to about 440 from 466 by the end of fiscal 2017. Last year, the retail chain closed 24 of the 490 stores that it started the year with, or 4.9% of its total count.
For the fourth quarter ended Jan. 28, New York & Co. reported:
- Net sales of $266.3 million, down 1.8% from $271.3 million during the same time last year.
- A net loss of $10.0 million, compared with a gain of $84,000.
- A year-over-year comparable-store sales decline of 0.4%, compared with a gain of 1.9%.
For fiscal 2016, New York & Co. reported:
- Net sales of $929.1 million, down 2.2% from $950.1 million in fiscal 2015.
- A net loss of $17.3 million, compared with a loss of $10.1 million.
- A year-over-year comparable-store sales decline of 0.7%, compared with a 3.1% gain.