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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.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.