New York & Co Loss Narrower Than Estimates

(RTTNews) - Specialty apparel chain New York & Co Inc (NWY) Wednesday reported third-quarter net loss of $9.7 million or $0.15 per share compared with a loss of $3.4 million or $0.05 per share last year.

Excluding items, adjusted loss for the quarter was $0.11 per share.

Revenues for the quarter were $210.3 million compared with $217.6 million in the prior year.

Analysts polled by Thomson Reuters estimated a loss of $0.13 per share on revenues of $210 million for the quarter. Analysts' estimates typically exclude special items.

During the third quarter, the company engaged a business advisory firm to assist in analyzing its business processes and organizational structure in an effort to identify cost savings and business improvement strategies. The company recently initiated an organizational realignment in connection with the business analysis performed.

As a result of the organizational changes made, the company expects to save $9 million to $10 million in annual payroll and related costs with $1.5 million in savings expected to be recognized during the fourth quarter of fiscal year 2014.

In connection with the reorganization, the company expects to record a charge of $2.2 million for severance and related benefits during the fourth quarter of fiscal 2014.

For the fourth quarter, the company expects adjusted earnings to be about breakeven, and sales and comparable store sales to be flat to down in the low single-digit percentage versus last year. Analysts expect earnings of $0.07 per share on revenues of $266.5 million.