New York & Co.
jumped 7% Thursday after the women's apparel retailer posted better-than-expected third-quarter earnings and gave a full-year profit forecast at the high end of its previous guidance.
For the period ended Oct. 28, the company earned $9.6 million, or 16 cents a share, more than double the year-earlier profit of $4.2 million, or 7 cents a share.
Revenue rose to $270.9 million from $254.4 million, while same-store sales climbed 0.5%.
Analysts expected earnings of 15 cents a share on revenue of $274.5 million.
"Our third-quarter earnings results were better than expected and reflected improved sell-through rates and disciplined inventory and expense management," said Richard Crystal, chairman and CEO. "As a result, we improved our gross-profit margin and significantly increased our net income, as compared to the prior-year period."
Looking ahead, the company sees fourth-quarter earnings of 37 cents to 46 cents a share on revenue of $390 million to $404 million. Analysts project earnings of 43 cents a share on revenue of $392.3 million.
For the full year, New York & Co. now expects earnings of 74 cents to 83 cents a share, up from its prior guidance of 70 cents to 82 cents. The company narrowed its sales forecast to a range of $1.19 billion to $1.21 billion from an earlier view of $1.20 billion to $1.22 billion.
Wall Street predicts fiscal-year earnings of 79 cents share and revenue of $1.2 billion.
"As we begin the fourth quarter, we remain conservative, yet are encouraged given the improving trends in several of our core categories and changes to our product flow," Crystal said. "We believe our strategies position us to capitalize on the increased mall traffic during and following the holiday selling season."
Shares of New York & Co. recently were trading up 99 cents to $14.28.