FINANCE

New York & Co. Posts 3Q Loss

BY CSA STAFF

New York City Specialty apparel chain New York & Co. reported a drop in third-quarter results. For the third quarter of fiscal 2008 ended Nov. 1, the company reported net sales of $249.0 million, down from $276.4 million for the same quarter last year.

Net loss from continuing operation was $8.0 million, compared to $5.3 million last year. This year’s loss includes a pre-tax charge of $2.5 million that is related to a management change.

Same–store sales fell 14.0%, compared to a 4.8% decrease in the prior year’s third quarter. The company reported that this drop includes shifting a key promotional program from the last week of the quarter into early November.

“While our third quarter financial performance is in line with our revised guidance, it is well below our original expectations,” said Richard P. Crystal, New York & Co.’s chairman and CEO.

“Our November sales trend has significantly improved vs. October, with the movement of our City Cash promotion and the introduction of our holiday floor set,” he said. “However, we are still cautious as we begin the holiday season and are preparing for a highly promotional environment.”

During the remainder of fiscal 2008, the company plans to have opened 25 stores, closed 15 stores and remodeled 14 stores, ending the fiscal year with 588 stores and 3.3 million sq. ft. of selling space in operation. The new stores will represent approximately 105,000 sq. ft. of selling space. Capital expenditures are estimated to be approximately $50.0 million in fiscal year 2008 vs. $75.5 million in fiscal year 2007.

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Walmart to partner with Feeding America

BY CSA STAFF

BENTONVILLE, Ark. Walmart announced that its supercenters and Neighborhood Markets will partner with Feeding America, the nation’s largest charitable hunger-relief organization, to provide an estimated 90 million pounds of food annually — the equivalent of 70 million meals — to families in need by the end of 2009.

In addition, the Wal-Mart Foundation announced a $2.5 million cash donation to Feeding America. These funds will be used to help Feeding America food banks improve warehouse capacity and purchase 20 new refrigerated trucks to safely transport food from Walmart stores to food pantries, soup kitchens and other Feeding America agencies.

“We are pleased to partner with Feeding America during a time of nearly unprecedented need and provide nutritious meals for their families,” said Bill Simon, evp and coo of Walmart U.S. “Given the current state of the economy and the increased burden on neighborhood food pantries and soup kitchens, we are enlisting our entire network of stores and clubs to participate in this food donation program to provide relief to communities throughout the country.”

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Despite 3Q growth, Ross cautious on 4Q outlook

BY CSA STAFF

PLEASANTON, Calif. Ross Stores reported that earnings per share for the third quarter increased 22% to 44 cents, from 36 cents for the same period last year. Net earnings for the third quarter were $57.3 million, up from $48.7 million for the third quarter last year. Fiscal 2008 third quarter sales increased 6% to $1.555 billion, with comparable-store sales even with the prior year period.

Michael Balmuth, vice chairman, president and ceo, commented, “We are pleased with our solid third quarter earnings growth, especially considering the very challenging macro-economic and retail environment. The ongoing resilience and flexibility of our off-price business model enabled us to respond to these external pressures by further reducing both inventories and expenses. These actions, along with better-than-expected shortage results from our annual physical inventory during the quarter, enabled us to protect profit margins and deliver earnings per share at the high end of our original guidance.”

Ross said it now expects fourth quarter comparable-store sales to decline 1% to 3% and earnings per share to be in the range of 69 cents to 75 cents, compared to 70 cents in the 2007 fourth quarter.

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