In a company note published earlier today, Piper Jaffray & Co. reiterated its Neutral rating for New York & Company, Inc. NWY and slightly raised its price target from $3.00 to $4.00.
Piper Jaffray said it made its decisions “following the company's FQ1 report. Although same-store sales were down 2.9% in FQ1, it appears that a trend-right bottoms assortment and conservative inventory buys have been successful in turning gross margin around, as FQ1 gross margin was above management's guidance. FQ2 guidance calls for gross margin 150-250 bps above our prior estimate. Longer-term, we believe management is continuing to make progress on its turnaround and that New York & Co. could be a high-single-digit operating margin business at some point, however we remain on the sidelines for now in view of negative same-store sales and a still-struggling moderate-income consumer.”
New York & Company, Inc. closed yesterday at $3.37.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in