20131204-汤森路透-NWY_-_Q3_2013_New_York___Company,_Inc._Earnings_Conference_Call_14页_221kb

New York & Company, Inc. Q3 2013 Earnings Conference Call Summary

Core Content Overview

New York & Company, Inc. reported its third-quarter 2013 earnings on December 4, 2013, highlighting improvements in performance and strategic initiatives. The company maintained a positive trajectory with comp store sales increases in all business channels and achieved its seventh consecutive quarter of improved operating performance.

Key Financial Performance

• Comp Store Sales: Increased by 3% in Q3 2013, compared to 0.7% in the same period last year.
• Gross Margin: Expanded to 28% in Q3 2013, marking the highest since 2007.
• Net Sales: Decreased by 0.7% to $217.6 million, compared to $219.3 million in Q3 2012.
• Operating Loss: Reduced to $3.1 million, compared to $3.8 million in Q3 2012.
• Net Loss: $3.4 million or $0.05 per diluted share, compared to $3.8 million or $0.06 per diluted share in Q3 2012.

Strategic Initiatives and Product Launches

• Eva Mendes Collection: Launched in September and exceeded expectations in terms of both brand and business performance. The collection drove significant traffic, especially online, with many items selling out within the first week.
• Expansion Plans: The Eva Mendes collection will be expanded to all stores in spring 2014, starting as an assortment.
• Marketing Impact: The launch generated 938 million impressions across TV, social media, and magazine partnerships, significantly boosting brand exposure.
• eCommerce Growth: Represented 10% of total sales in Q3 2013, with double-digit growth in AUR (Average Unit Retail) and record levels of unique visitors.
• Outlet Channel: Continued to be a strong and profitable segment, contributing 9% of total sales. Outlet-exclusive merchandise now accounts for 70% of outlet sales, up from 40% last year.

Store Operations and Development

• Store Count: The company ended Q3 with 513 stores, including 50 outlet stores and 2.7 million selling square feet.
• New Store Openings: Opened 6 stores in Q3, including 5 outlet stores and 1 core store.
• Remodels and Closures: Completed 2 remodels, closed 5 stores, and plans to expand outlet locations to over 75 nationwide by the end of the year.
• New Store Focus: New store openings are primarily focused on the outlet channel, while some core stores are being remodeled or downsized.

Fourth Quarter Outlook

• Comparable Store Sales: Expected to increase by low single-digit percentage.
• Net Sales: Projected to decrease by low single-digit percentage compared to last year's non-GAAP net sales of $287.5 million, and by mid single-digit percentage compared to GAAP net sales of $291.8 million.
• Gross Margin: Expected to increase by 50 to 150 basis points compared to the prior year's non-GAAP gross margin rate of 2.9%.
• Operating Income: Projected to be between $3 million and $7 million for Q4 2013.
• Inventory: Expected to increase by high single-digit percentage at the end of Q4, with a high single-digit to low double-digit increase per average store.
• Capital Expenditures: Expected to be between $7 million and $10 million for Q4, primarily for IT infrastructure and eCommerce site replatforming.

Traffic and Promotional Strategy

• Traffic Trends: While overall traffic was challenging, there was an improvement in traffic during the Eva Mendes launch in September, especially online.
• Holiday Promotions: The company has a strong promotional calendar planned for the holiday season, including the Wish List – 12 Days, 12 Deals promotion.
• Black Friday Performance: The company reported mid-single-digit comp sales during the Thursday/Friday Black Friday period, which was a strong start to the holiday season.
• Promotional Adjustments: The company has shifted its holiday strategy, focusing on gift-giving in December and core wear-to-work items in the first week, with a new resort-free approach to align with customer preferences.

Customer Insights

• New Customers: The Eva Mendes launch attracted new customers, with a fairly incremental customer base compared to core customers.
• Customer Behavior: New customers were also purchasing traditional NYCO merchandise, indicating a broad appeal.
• Marketing Analytics: The company conducts in-depth analysis to understand customer behavior and tailor communication strategies accordingly.

Conclusion

New York & Company remains focused on its core strengths, particularly in pant and denim categories, and continues to drive growth through its eCommerce and outlet channels. The company is optimistic about its holiday season performance, supported by strategic marketing initiatives and a well-planned promotional calendar. The company also emphasized the importance of brand exposure and customer engagement, with the Eva Mendes collection serving as a key driver for both sales and brand awareness.