New York City Despite falling sales and continuing losses, one Wall Street analyst still has upgraded New York City-based New York & Co. to “Buy.”
SunTrust Robinson Humphrey analyst Robin Murchison upgraded the clothing retailer on Tuesday from “Neutral,” saying New York & Co. has “an opportunity to show improvement in the new year from a compelling merchandise assortment and substantial corporate restructuring.”
Earlier this year, the company said it would close up to 50 stores over the next five years and cut more than 300 jobs, mostly managerial positions. The retailer currently runs 596 stores nationwide.
New York & Co. predicted $175 million in savings over a five-year span. Murchison said the company will save about $30 million annually starting in fiscal 2010.
In terms of its merchandise, Murchison said the company is adding more fashionable clothes to its offerings, and may benefit from consumers trading down to the chain's affordable prices.
Murchison said she envisions an 8.0% same-store sales decline in the first half of fiscal 2010.