New York & Co.: No Guidance

New York & Co.'s (NWY - Snapshot Report) 4th quarter came in as expected, but it did not provide EPS guidance for 2009. We continue to expect weak sales trends throughout this year, but its sales should finally bottom out for this cycle.

Meanwhile, NWY will continue to implement its restructuring and cost reduction plan, which is expected to reduce operating costs by $30 million in 2009 and $175 million over the next 5 years. While that is a step in the right direction, it does very little to help spur the company's sales growth which is the real problem at this point.

Its stock is trading at about 15x our fiscal 2010 EPS estimate. That valuation is not exactly cheap when compared to other retail stocks. We maintain our Hold rating.

Read the full analyst report on NWY