NEW YORK — New York & Co. Inc. posted a 20.7 percent rise in fourth-quarter net earnings on a slight increase in sales. Profit results were ahead of analysts’ consensus estimates.
For the three months ended Jan. 29, the specialty retailer earned $18.7 million, or 33 cents a diluted share, versus $13.3 million, or 23 cents, a year ago. Results in both quarters included certain charges related to New York & Co.’s initial public offering.
Excluding the IPO-related costs, the company said it would have earned $18.9 million, or 33 cents a diluted share. That’s ahead of analysts’ estimates for a profit of 31 cents.
Total quarterly sales were $302.8 million, up 0.3 percent, while same-store sales declined 2.7 percent.
The firm said it expects to take a charge totaling 2 to 3 cents due to changes in the way it accounts for store operating leases as per a clarification issued by the Securities and Exchange Commission in early February.
The company reaffirmed its prior first-quarter earnings-per-share projection of 35 to 38 cents, versus analysts’ estimates of 37 cents.
“We begin fiscal 2005 with our chain positioned for significant growth,” said Richard Crystal, chairman and chief executive officer of the company.
In fiscal-year 2004, New York & Co. had net earnings totaling $18.1 million, or 34 cents a diluted share, compared with $16.7 million, or 31 cents, a year ago. The decline in profits was predominantly due to one-time charges related to the company’s IPO.
Excluding the charges, the company said net earnings available to common shareholders would have been $57.8 million, or $1.10 a share, ahead of analysts’ estimates for $1.08.
Total revenues for the year increased 8.1 percent to $1.04 billion and same-store sales were up 7.2 percent. The company said sales in accessories increased 28.5 percent in the year.