New York & Company posts 1Q profit

New York & Co.'s 1st-quarter beats market forecasts; shares up after hours

Associated Press

NEW YORK (AP) -- New York & Company Inc. posted a profit for its fiscal first quarter as the clothing company improved its pricing and merchandise selection. The quarter's results exceeded market expectations, and shares jumped in after-hours trading Thursday.

The company reported net income of $1.6 million, or 3 cents per share, for the quarter that ended May 4. That compares with a loss of $211,000, or break-even on a per-share basis, last year. Revenue slipped slightly to $227.5 million from $227.7 million last year.

Analysts polled by FactSet were anticipating a loss of 7 cents per share on revenue of $216.8 million.

New York & Co.'s CEO Gregory Scott said that it was a slow start to the season, but the company held special promotions to increase traffic, which helped sales later in the quarter. It also reported gains in its online and outlet sales.

The company's revenue from established stores fell 2 percent, following a decrease of 2.9 percent in the same quarter last year. This is considered a key indicator of a retailer's operating performance because it strips away the impact of recently opened or closed stores.

New York & Co. said that it expects its second-quarter operating results to range between break-even to a loss of $4 million, due in part to 25 fewer stores than in last year's second quarter.

The company currently operates 519 stores nationwide.

Shares jumped 4 percent to $4.95 in after-hours trading on the news. Its stock increased 23 cents to close regular trading at $5.03.

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