New York & Company, Inc. announced unaudited consolidated earnings results for the fourth quarter and fiscal year ended February 3, 2018. For the quarter, the company reported net sales of $278,713,000 against $266,323,000 a year ago. Operating income was $5,006,000 against loss of $9,222,000 a year ago. Income before income taxes was $4,869,000 against loss of $9,532,000 a year ago. Net income was $4,747,000 or $0.07 per basic and diluted share against loss of $9,988,000 or $0.16 per basic and diluted share a year ago. Net profit was $4,997,000 or $0.08 per diluted share against loss of $3,788,000 or $0.06 per diluted share a year ago.

For the year, the company reported net sales of $926,868,000 against $929,081,000 a year ago. Operating income was $6,928,000 against loss of $15,383,000 a year ago. Income before income taxes was $6,113,000 against loss of $16,618,000 a year ago. Net income was $5,675,000 or $0.09 per basic and diluted share against loss of $17,291,000 or $0.27 per basic and diluted share a year ago. Net cash provided by operating activities was $21,178,000 against $48,760,000 a year ago. Capital expenditures were $12,530,000 against $18,308,000 a year ago. Non-GAAP as adjusted net income were $6,445,000 or $0.10 per diluted share against net loss of $11,564,000 or $0.18 per diluted share a year ago. EBITDA was $29.7 million for the full fiscal year. This compares to $8.6 million for fiscal year 2016 representing an improvement of $21.1 million. On an adjusted basis, excluding the impact of non-operating charges of $0.8 million in fiscal year 2017 and $5.7 million in fiscal year 2016, adjusted EBITDA was $30.5 million in fiscal year 2017, as compared to $14.4 million in fiscal year 2016.

For the first quarter the Company expects non-GAAP operating income to be in the range of $2 million to $3 million excluding the impact of non-operating charges of $0.6 million primarily related to severance, resulting from the Company's recently completed streamlining of its corporate office support functions, as compared to a non-GAAP operating loss of $2.3 million in the prior year. Adjusted EBITDA for the first quarter is expected to be in the range of $8 million to $9 million, excluding the impact of the aforementioned non-operating charges of $0.6 million, as compared to $3.8 million of adjusted EBITDA in the prior year period. The first quarter guidance reflects the following: Net sales are expected to increase in the low to mid-single-digit percentage range, reflecting the combined effect of the shift of the calendar due to the 53rd week in 2017, and growth in eCommerce sales, partially offset by a reduced store count. As it relates to the calendar shift, an important pre-Mother's Day week is moving out of the second quarter and into the first quarter benefiting sales and profits during the first quarter, but this shift will negatively impact the second quarter, as compared to last year. Comparable store sales, which are shifted to compare like calendar weeks, are expected to increase in the low single-digit percentage range. Gross margin on a GAAP basis is expected to be up 150 basis points to 200 basis points reflecting reductions in home office payroll costs driven by the ongoing benefits of Project Excellence and reductions in occupancy costs due to the Company's aggressive real estate negotiations, partially offset by increased shipping costs associated with the growing omni-channel business. Capital expenditures for the first quarter of fiscal year 2018 are projected to be approximately $2 million to $4 million, as compared to $2.1 million of capital expenditures in the first 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 first quarter of fiscal year 2018 is estimated to be approximately $5 million.

Regarding expectations for fiscal year 2018, the Company continues to focus on improving its operating results to drive increases in both annual operating income and EBITDA. As the Company enters the Spring season, the combined effects of the calendar shifts from the 53rd week in 2017 and new revenue recognition accounting standards will have an impact on the individual quarterly results, and as such, the Company will provide commentary on the overall Spring season, which combines the first and second quarters of fiscal year 2018, in addition to more detailed commentary on first quarter metrics. For the Spring season, combined first and second quarter of fiscal year 2018, the Company expects non-GAAP operating income to be in the range of $3 million to $5 million, excluding the impact of non-operating charges of $0.6 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 $15 million to $17 million, as compared to adjusted EBITDA of $12.8 million for the prior Spring season after excluding non-operating charges and benefits.

For the full year, capital expenditures are expected to be below the prior year at $10 million to $12 million, including capital required for the Company's new Fashion to Figure business. Depreciation expense for the full year is expected to be approximately $22 million.