New York & Company falls on slashed guidance
New York & Company, Inc. (NYSE: NWY) shares are falling after the women’s apparel retailer lowered its fiscal year earnings outlook range to a loss of $0.10 per share to earning $0.03 per share, from previous guidance of earning $0.32 to $0.45 per share. Last year, the company earned $0.77 per share.
Before the opening, New York & Company reported that it swung to a third-quarter loss of $16 million, or $0.27 per share, widely missing analyst estimates of earning $0.05 per share and compared with earning $9.6 million, or $0.16 per share, a year earlier. Quarterly revenue rose 6% to $287 million, above Wall Street projections of $285.5 million and from $270.9 million during the year-ago period.
“We are pleased that our strategy of maximizing profitability by controlling inventory and managing expenses has enabled us to exceed the high end of our guidance in a challenging business environment,” CEO Richard Crystal said in a statement. “We are excited about our new bath and body launch, pleased with our sustained success in the pant, dress, skirt, jacket and sweater categories, and look forward to continued growth in our E-Commerce business."
The company also said it will exit its underperforming 23-store JasmineSola chain, aimed at selling apparel to young women.
In afternoon trading, NWY shares are down 9.82%, or $0.72, at $6.61. Over the last 52 weeks, shares have ranged from $5.69 to $16.20.
