E-commerce represents 14% of overall sales for retail chain New York & Co.
March 25, 2015 09:29 AM
Overall sales dropped slightly, but e-commerce continued to grow at a double-digit pace for women’s apparel retail chain New York & Co. Inc. in fiscal 2014.
Company president John Worthington, who joined New York & Co. in November after two decades at Kohl’s Corp., told analysts on the retailer’s Q4 2014 earnings call that e-commerce now accounts for 14% of the company’s overall sales, versus 10% in fiscal 2013. Based on reported net sales of $923.3 million, that percentage would put the company at $129.3 million in online sales for fiscal 2014, up 37.7% from $93.9 million in fiscal 2013. New York & Co. is No. 229 in the Internet Retailer 2014 Top 500 Guide.
“The fourth quarter marked our third consecutive quarter of positive traffic trends in our core New York & Co. stores along with our e-commerce business,” CEO Greg Hall told analysts, according to a transcript of the earnings call obtained from Seeking Alpha. “We believe the evolution of our product offering will enable us to reach more customers and have existing customers shop with us more frequently.
Executives attributed some of that e-commerce success to the company’s buy online, pick up in store program, which launched during fiscal 2014. The company also began fulfilling online orders directly from its retail locations. In its Q4 2014 earnings filing, New York & Co. said it plans on investing $4 million to $5 million in information technology and e-commerce with the goal of continuing its online growth.
“Over the past several years we have focused our resources on, creating a more dynamic business model for New York & Co. understanding that the retail landscape has changed significantly and continues to evolve,” Scott told analysts. “This updated model gives us omnichannel capability to best serve our customer, no matter where she shops, and has provided us with the platform to grow our e-commerce business.”
For fiscal year 2014, the company earned $249.8 million vs $264.4 million a year earlier. Comparable store sales fell 1%.