New York & Company Inc. Announces Unaudited Consolidated Earnings Results for the First Quarter Ended May 5, 2018; Provides Earnings Guidance for the Spring Season, Second Quarter and Full Year 2018
For the spring season, which consists of first and second quarters of fiscal year 2018, the company has increased its expectations and now expects non-GAAP operating income to be in the range of $5 million to $6 million, excluding the impact of non-operating charges of $1.0 million primarily related to severance, resulting from the company's recently completed streamlining of its corporate office support functions, as compared to the prior year non-GAAP operating income of $1.2 million. Adjusted EBITDA for the spring season, excluding the aforementioned charge for severance, is expected to be in the range of $17 million to $18 million, as compared to adjusted EBITDA of $12.3 million for the prior spring season after excluding non-operating charges and benefits. Net sales for the full spring season are expected to be up slightly, reflecting growth in ecommerce and the addition of Fashion to Figure, partially offset by a reduced store count. Comparable store sales, which are shifted to compare like calendar weeks, are expected to increase in the low single-digit percentage range for the full spring season. EBITDA for the full spring season is expected to be in the range of $17 million to $18 million.
For the second quarter, the company projects capital expenditure to be approximately $3 million to $5 million, as compared to $2.6 million of capital expenditures in the second quarter of last year, reflecting continued investments in the company's information technology and omni-channel infrastructure, and real estate remodel/refresh activity. Depreciation expense for the second quarter of fiscal year 2018 is estimated to be approximately $5 million
For the full year, capital expenditures are expected to be in the range of $10 million to $12 million.