New York & Co. Goes Negative

Seth Jayson, The Motley Fool
Updated

New York & Co. (NYS: NWY) reported earnings March 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 28 (Q4), New York & Co. met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to a loss.

Margins shrank across the board.

Revenue details
New York & Co. booked revenue of $271.8 million. The seven analysts polled by S&P Capital IQ expected revenue of $275.0 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $303.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.14. The three earnings estimates compiled by S&P Capital IQ anticipated -$0.18 per share on the same basis. GAAP EPS were -$0.18 for Q4 against $0.24 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 21.8%, 730 basis points worse than the prior-year quarter. Operating margin was -4.0%, 810 basis points worse than the prior-year quarter. Net margin was -4.0%, 900 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $227.0 million. On the bottom line, the average EPS estimate is -$0.05.

Next year's average estimate for revenue is $945.3 million. The average EPS estimate is -$0.20.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 305 members out of 353 rating the stock outperform, and 48 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give New York & Co. a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on New York & Co. is outperform, with an average price target of $3.22.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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