The Company now expects the New York & Company brand to earn approximately $0.08 per diluted share reflecting the impact of lower than expected comparable store sales performance. The JasmineSola loss is now expected to approximate $(0.07) per diluted share primarily due to unanticipated charges of $5.1 million, or $(0.05) per diluted share.
These charges are primarily the result of costs associated with the completion of the Company's arbitration proceeding in April and to a lesser degree, charges to liquidate inventory resulting from the unexpected loss of a JasmineSola lease in April and the resulting modification of the closeout inventory strategy.
This compares to the Company's actual first quarter fiscal 2006 diluted earnings per share of $0.10. During the first quarter, the Company opened 11 stores and closed two stores, ending the quarter with 569 stores.
"As we look ahead, we believe our assortments are on target with our customers' desires, which we believe led to the improvement in results that we started experiencing toward the latter part of April," Mr. Crystal continued. "We have put the JasmineSola arbitration behind us and continue to focus on increasing the productivity of the chain. Additionally, we are enthusiastic regarding the initial response to our new initiatives in e-commerce and marketing."
The Company further noted that it plans to provide additional information regarding its outlook for fiscal 2007, when it reports first quarter earnings on May 24, 2007.
A conference call to discuss April sales is scheduled for Thursday, May 10, 2007 at 9:00 am Eastern Daylight Time. Investors and analysts interested in participating in the call are invited to dial approximately ten minutes prior to the start of the call.
marketing@alchempro.com
