Thursday, specialty apparel chain New York & Co. Inc. (NWY) reported a loss for the fourth quarter, hurt by restructuring charges and lower quarterly revenues. For the first quarter, the company expects loss per share to be in the high single-digit range.
The New York-based company reported a fourth-quarter net loss of $27.38 million or $0.46 per share, compared to net income of $6.87 million or $0.11 per share in the same quarter last year. On an adjusted basis, net loss was $11.82 million or $0.20 per share.
Net loss from continuing operations was $27.64 million or $0.46 per share, compared to net income of $11.17 million or $0.18 per share in the prior-year quarter. Adjusted net loss from continuing operations was $12.07 million or $0.20 per share.
On average, four analysts polled by Thomson Reuters expected the company to report a loss of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.
Adjusted loss from continuing operations excludes pre-tax charges of $24.5 million related to previously announced restructuring and cost reduction program and $1.5 million charge related to the settlement of two separate class action lawsuits in the State of California.
Net sales for the quarter was $325.09 million, down from $359.41 million last year. Comparable store sales for the quarter decreased 10.9%. Analysts expected the company to report revenue of $329.84 million.
Richard Crystal, the company's chairman and chief executive officer, said, "The fourth quarter of fiscal 2008 marked a challenging period for our Company, as the extremely weak economic environment and the resulting impact on consumer spending in the retail sector reduced sales and gave rise to a highly promotional environment which affected profitability."
For the full year, the company reported a net loss of $19.81 million or $0.33 per share, compared to a loss of $4.86 million or $0.08 per share in the previous year. On an adjusted basis, net loss was $2.73 million or $0.04 per share, for the full year.
Loss from continuing operations for the year were $20.30 million or $0.34 per share, compared to income from continuing operations of $26.68 million or $0.44 per share last year. Adjusted net loss from continuing operations was $6.43 million or $0.05 per share for the year.
Net sales for the fiscal year declined to $1.14 billion from $1.19 billion in the prior year. Comparable store sales decreased 8.6% for the year.
Analysts expected the company to report a loss of $0.02 per share on revenue of $1.14 billion for the fiscal year.
Looking forward, for the first quarter, the company expects loss per share to be in the high single-digit range, but anticipates income in the second quarter. Analysts currently anticipate the company to earn $0.04 per share for the first quarter.
The company said it has chosen to suspend its earnings guidance for the full year, citing limited visibility stemming from the volatility of the economy. However, the company expects earnings from continuing operations for the first half of fiscal year 2009 to be approximately breakeven.
"To advance our goals, we have implemented a cost reduction program and expect to generate $30 million in pre-tax savings this year. We have reduced our capital expenditures to $15 million and we will continue to plan inventory tightly while delivering current fashion, in our New York & Company style, to drive improvement in merchandise margins," Crystal concluded.
NWY is currently trading on $2.65, down $0.21 or 8.74% on a volume of 83,262 shares on the NYSE.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.