New York & Co. shares plunged Thursday after the women's fashion and accessories retailer reported a weaker-than-expected third quarter and said it expects drop in fourth-quarter revenue.
The company said Wednesday that it lost $3.4 million, or 5 cents per share, for the three months ended Nov. 2 versus a loss of $3.8 million, or 6 cents per share, last year. Its revenue slipped to $217.6 million from $219.3 million.
Analysts polled by FactSet were anticipating a smaller loss of 3 cents per share on higher revenue of $223.5 million.
New York & Co. has been closing unprofitable stores and tightly controlling costs, which helped improve some facets of its performance for the quarter. But it also faced weaker traffic in its shops during the period, like many other mall-based retailers.
The company said that its revenue from stores open at least a year increased 3 percent for the quarter with gains at its namesake stores, outlet stores and online. This is considered a key indicator of financial performance as it strips away the impact of recently opened or closed stores that can distort the results.
New York & Co. said that it had a solid start to the holiday season with strong sales volumes and higher margins than last year. While it is still early in the quarter, the company said it has the right initiatives in place to capitalize on the balance of the shopping season.
However, the company forecast a slight drop in its revenue for the fourth quarter due to fewer stores, an extra week of sales last year and a one-time benefit to its revenue in the prior quarter.
Shares fell 57 cents, or 11.2 percent, to $4.54 in afternoon trading. Its stock had been up nearly 34 percent for 2013 as of Wednesday's close.
- Investment & Company Information