NEW YORK (
New York & Company
narrowed its loss in the third quarter and announced that it foresees a return to profit by the end of the year, yet another sign of a rebound in women's apparel.
The news sent shares soaring 14.9% to $4.31 in afternoon trading.
During the quarter, the company recorded a loss of $6.3 million, or 11 cents a share, compared with a loss of $7.9 million, or 13 cents, in the year-ago period. Analysts expected a loss of 8 cents.
Sales dropped 8% to $227.9 million from $249 million, while same-store sales tumbled 8.4%.
"In October, we experienced the start of what we hope is a turnaround as we posted our strongest monthly sales comparisons in over 12 months, and this momentum has continued into the first two weeks of November," Chief Executive Richard Crystal said in a statement.
Looking ahead New York & Company said it expects to return to a profit in the fourth quarter and scale back promotions.
On Wednesday, rival
posted a gain in both profit and sales, easily surpassing Wall Street's forecast.
( DBRN) will release its quarterly results after the market closes today.
-- Reported by Jeanine Poggi in New York
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