This leading specialty retailer of fashion-oriented and moderately priced women’s apparel suffered some of their worst days in the last 8 years with reports of a wider than expected loss and decline in sales early in 2016. New York & Company is just one of the many stores who have fell victim to the preference of internet shopping over the brick and mortar shopping experience. Consumers are also more apt to buy items to spruce up their home rather than fill their closets these days making retail stores around the globe worried.
In March of 2016, New York & Co. lost 40% of their share value with a decline in revenue and same store sales. Chief Executive Gregory Scott said of the plunging numbers in earlier in the year, “We began the quarter with positive sales trends; however, as we entered the last week of March, we experienced a slow down in traffic to our brick-and-mortar stores, that continued into April, and led to sales and profitability below our expectations.”
Scott also added that the company’s e-commerce business and celebrity backed sub-brands did show sales growth, but that it was not enough to offset the negative traffic in the stores themselves. It also did not help offset the weakness in seasonal categories such as crops, shorts, T-Shirts and dresses.
Analysts seem to be giving up hope and one Eric Beder at Wunderlich Securities said “While we did not expect New York & Co. to be totally immune to the malaise that has affected the specialty retailing sector, we did believe the company’s supply chain streamlining program and strong results from Eva Mendes and Jennifer Hudson lines would have provided some protection; we were wrong, and, after waiting and waiting for the turn, are finally giving up and moving to the sidelines.”