Strong Buy on New York & Company - Analyst Blog


On Mar 22, 2013, Zacks Investment Research upgraded New York & Company, Inc. ( NWY ) to a Zacks Rank #1 (Strong Buy). Shares of this specialty retailer of women's fashion attire and accessories have amassed an impressive year-to-date return of 16.2%.

Why the Upgrade?

New York & Company posted better-than-expected fourth-quarter fiscal 2012 results on the back of top-line growth, rise in comparable-store sales and gross margin expansion. The company declared impressive results on Mar 21, 2013, wherein earnings of 10 cents a share surpassed the Zacks Consensus Estimate of 8 cents by 25%.

New York & Company, which primarily competes with Gap Inc. ( GPS ) and Express Inc. ( EXPR ), outperformed the Zacks Consensus Estimates in 4 straight quarters by an average of 43.9%. The long-term expected earnings growth rate for the stock is 17.5%.

Net sales jumped 7.3% over the prior-year quarter to $291.8 million, and came ahead of the Zacks Consensus Estimate of $282 million. Comparable-store sales portrayed a substantial increase of 2.3% from a decline of 6.3% in the year-ago quarter.

Gross profit for the quarter jumped 37.9% to $81.6 million, whereas gross margin expanded 620 basis points to 28%, benefiting from growth in net sales.

Other Stocks to Consider

Another stock worth considering in the non-food retail, wholesale sector includes Lumber Liquidators Holdings Inc. ( LL ) carrying a Zacks Rank #1 (Strong Buy). Shares of this specialty retailer of hardwood flooring have yielded a year-to-date return of 25%.

EXPRESS INC (EXPR): Free Stock Analysis Report

GAP INC (GPS): Free Stock Analysis Report

LUMBER LIQUIDAT (LL): Free Stock Analysis Report

NEW YORK & CO (NWY): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: EXPR , GPS , LL , NWY

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