NEW YORK — Women’s specialty retailer New York & Co. Inc. cut by almost half its first-quarter earnings-per-share forecast for the second time this year, saying in a statement Thursday that soft sales results so far in the quarter don’t support its most recent guidance.
The company expects to earn 9 cents to 13 cents in the first quarter, down from an estimate of 20 cents to 23 cents. The analyst consensus is for EPS of 21 cents.
In early March, New York & Co. reduced its EPS guidance to a range of 20 cents to 23 cents from an initial estimate of 38 cents to 42 cents.
First-quarter net sales are now expected to be $264 million to $269.5 million, down from a prior estimate of $277 million to $282 million. Analysts are expecting sales of $275.4 million.
The retailer sees same-store sales falling 8.2 to 9.5 percent in the quarter, compared to a prior estimate of a 4 to 6 percent drop.
Shares of New York & Co. fell 5.9 percent on the news to $14.18 in Thursday trading on the New York Stock Exchange.
Equity analyst Brian Tunick of J.P. Morgan Securities wrote in a research report following a meeting with New York & Co. management on Thursday that “poor merchandise (crops, body shapers, stretch shirts) was more than half of the miss to [the first-quarter earnings] plan, while sluggish traffic (transactions down 18 percent in March) and higher rent leverage points made up the other half of the miss.”
New York & Co. said in early April that March same-store sales fell 15.7 percent, while total sales in the month were down 7.7 percent at $94.9 million.
But at that time, Richard P. Crystal, chairman and chief executive officer of New York & Co., had said in a statement, “As we begin April, we are encouraged by early results, believe sales will continue to strengthen and expect comparable-store sales to turn positive. We believe our merchandise assortment is well positioned to capitalize on the increase in customer traffic expected during the month.”
The company said in Thursday’s statement that April same-store sales are expected to increase 1 to 6 percent.
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Both Tunick and Neely Tamminga, a senior research analyst with Piper Jaffray, said they still feel optimistic about the long term for the company, despite the reduction in first-quarter EPS estimates.