Why Shares of New York & Company, Inc. Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of New York & Company,  (NYSE: NWY  ) weren't looking so hot today, falling as much as 10%, and closing down 7% on a disappointing first-quarter earnings report.

So what: The fashion retailer missed slightly on both top and bottom lines, coming up with breakeven EPS on expectations of a penny per-share profit, while revenue fell 3.4% to $219.6 million, missing estimates at $223.6 million. Same-store sales dropped 2.2%, and the company closed 12 locations in the previous year as part of its real estate optimization strategy. CEO Gregory Scott noted that comparable sales improved toward the end of the quarter, and said that performance in e-commerce and in its outlet stores was solid.

Now what: Looking ahead, New York & Co. expects a slight increase in revenue for the current quarter on flat to slightly higher comparable sales, in line with Wall Street expectations of an overall revenue increase at 1.4% in the quarter. Management also guided operating income at breakeven, matching estimates, as well. Seeing as the company is in the midst of a turnaround as it's recently closed stores, I'd give management a few more quarters to see if it can drive profitability. Analysts are expecting a full-year profit of $0.16 per share, which would be a marked improvement from a year ago.

Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the eight-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2970704, ~/Articles/ArticleHandler.aspx, 11/25/2014 11:19:22 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement