In its second-largest acquisition, Amazon buys the company for $970 million.
Multi-channel apparel retailer New York & Co. reported that web sales are on track for about $40 million, up by about 82% compared at the same time last year. But comp store sales declined 14% for the most recent quarter.
Multi-channel apparel retailer New York & Co. Inc. reported that its web sales are on track for about $40 million, up by about 82% compared with $22 million in the prior year.
Only online for two years, NYandCompany.com is attracting a following, says chairman and CEO Richard P. Crystal. “We are using different marketing to attract customers to the web as well as our own e-mail plans,” he says. “We seem to have a very good customer base. We have negligible returns because a lot of those returns come back to the store so it’s a very profitable avenue for us. We continue to spend in adding infrastructure to the web as well as continuing to spend on marketing to drive more share. We’re also testing some in-store programs using kiosks with computers to tie back to the web.”
The web is a bright spot for the retailer, which also reported that comparable store sales declined 14% for the third quarter ended Nov. 1, 2008. Overall sales were $249 million, down by 10%, or $27.4 million, vs. $276.4 million for the third quarter of fiscal 2007. Third quarter 2008 net loss was $8 million, compared with prior year Q3 net income of $5.3 million. New York & Co. didn’t break out Q3 e-commerce sales.
Crystal says that, while total November sales improved vs. October, “we are still cautious as we begin the holiday season and are preparing for a highly promotional environment.”
Year-to-date, New York & Co. reported overall sales of $814.8 million, down by 2.5% or $20.7 million, compared with $835.5 million for the first nine months of 2007. Comparable store sales decreased 7.6% for the first nine months of 2008. Net income through three quarters of fiscal 2008 was $7.3 million, vs. net income of $15.5 million for the prior year period.
New York & Co. is No. 303 in the Internet Retailer Top 500 Guide.