Retailers, especially those that sell clothing, have some pretty heavy mood swings. So do their investors. Believe me, I know.
With that in mind, I officially swing my mood on Motley Fool Hidden Gems pick New York & Co.
For a bit of background, the retailer had been turning in some pretty soggy sales numbers over the past few months. Some of us shareholders were not impressed, but we held out anyway because in this business, things change quickly.
Moreover, New York & Co. seemed to realize what needed fixing and was making efforts to get that done. Hey, everyone can't hit it out of the park all the time. Well, maybe Chico's FAS
That said, the latest sales numbers from New York & Co. look very solid, with November showing a 20.7% gain in total sales, atop a 12.9% gain in same-store sales. (A golf clap, please. That comps figure is even better than the 11.8% mark recently hit by Chico's.)
We won't know how this all shakes out on the bottom line for a couple of months. (How much of this selling came at full price? What kind of spending did they need to do to bring shoppers in? What was the product mix?) But this is good enough news for now. One month certainly does not a trend make, but anything other than continued sales stagnation is welcome in this investor's portfolio.
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Seth Jayson is glad that the long lines he saw at his neighborhood New York & Co. were indicative of solid sales. At the time of publication, he had shares of New York & Co. but no position in any other firm mentioned here. View his stock holdings and Fool profile here. New York & Co. is a Motley Fool Hidden Gems pick. Gap is a Stock Advisor pick. Fool rules are here.