NEW YORK — New York & Company Inc. swung to a second-quarter profit from a loss a year ago, matching analysts’ expectations thanks to a strong merchandise assortment and successful store expansion.
But the company forecast future earnings and sales that could come in below analysts’ consensus estimates, causing its shares to drop $1.04, or 5.2 percent to $19.07 in Thursday trading.
In the three months ended July 30, the company had net earnings of $12.3 million, or 21 cents a diluted share, compared with a loss of $8.9 million, or 20 cents, in the same quarter last year. Operating income rose 67.2 percent to $21.7 million from $13 million a year ago. Total second-quarter revenues increased 4.8 percent to $254.6 million with same-store sales up 0.4 percent.
In the six months, net earnings at New York & Co. skyrocketed 731.4 percent to $33.7 million, or 59 cents a diluted share, compared with $4.1 million, or 8 cents, in the year-earlier period. Total revenues were up 6 percent at $524.6 million.
New York & Co., which recently purchased a 14-store Boston-based company called Jasmine Sola, operated 506 specialty apparel and accessory stores at the end of the quarter.
Regarding its outlook, the company expects third-quarter same-store sales to be flat, while total revenues are seen up 6.4 to 8.5 percent in the range of $257.9 million to $262.8 million, including sales from Jasmine Sola. Earnings per share are expected to be in the range of 15 to 18 cents. Analysts are forecasting a profit of 25 cents on revenues of $263 million.
In the full year, New York & Co. forecast EPS to be between $1.18 to $1.26 on revenues of $1.13 billion to $1.14 billion. Analysts’ consensus is for a profit of $1.25 cents in the year on sales of $1.13 billion.