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, 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.
The article Why Shares of New York & Company, Inc. Dropped originally appeared on Fool.com.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.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.