RTW Retailwinds, Inc. Comments on Holiday Performance and Fourth Quarter Outlook
10 Gennaio 2020 - 10:05PM
Business Wire
RTW Retailwinds, Inc. [NYSE:RTW], an omni-channel specialty
apparel retail platform for powerful celebrity and consumer brands,
today commented on its holiday (the nine weeks ended January 4,
2020) performance and fourth quarter (the thirteen weeks ending
February 1, 2020) fiscal year 2019 outlook ahead of its fireside
chat at the 22nd Annual ICR Conference.
Gregory Scott, RTW Retailwinds CEO, commented: “Growth in our
core digital brand, celebrity brands and another double-digit comp
increase for our Fashion to Figure business driven by eCommerce
were not enough to offset disappointing holiday sales resulting
from significant declines in store traffic which led to increased
promotional activity. These results emphasize the urgency to adapt
to the challenges we face as a business.”
Mr. Scott continued: “In light of our performance and given the
current environment, we are taking decisive action and accelerating
our strategic transformation agenda. We are addressing these
challenges with a sense of urgency, which will include investing in
our customer first initiative, rationalizing our real estate
portfolio, evaluating all aspects of our go-to-market strategy, and
reconfiguring our business to support a profitable and more
balanced direct to consumer operating model. We are in the process
of finalizing the details of our strategic transformation and will
provide further updates during our fourth quarter and fiscal year
2019 earnings release as we position RTW Retailwinds to deliver
long-term profitable and sustainable growth. Our strong balance
sheet with significant cash and no debt affords us the opportunity
to support our transformation.”
Based upon holiday results, the Company now expects comparable
store sales for the fourth quarter to be down 8% to 10%, as
compared to the same period last year. The operating loss for the
fourth quarter is now expected to reflect a loss in the low to mid
$20 million range prior to the impact of non-cash impairment
charges related to underperforming store assets which will be
determined based upon the final closeout of the fiscal year. The
Company continues to expect inventory to be down in the
mid-single-digit percentage range as we enter the Spring
season.
Cash per diluted share is expected to be approximately $1 per
diluted share with approximately $60 million in cash on-hand and no
outstanding debt including no borrowings under the Company’s
asset-based credit facility which provides significant additional
liquidity. The Company plans to report actual results for the
fourth quarter and full fiscal year 2019 in March 2020.
ICR Conference
As previously announced, the Company will be participating in a
fireside chat at the 22nd Annual ICR Conference in Orlando, Florida
which will be held on Tuesday, January 14, 2020 at 10:00 a.m.
Eastern Time, and will be webcast live at www.nyandcompany.com.
About RTW Retailwinds
RTW Retailwinds, Inc. (together with its subsidiaries, the
"Company") is a specialty women's omni-channel retailer with a
powerful multi-brand lifestyle platform providing curated fashion
solutions that are versatile, on-trend, and stylish at a great
value. The specialty retailer, first incorporated in 1918, has
grown to now operate 412 retail and outlet locations in 35 states
while also growing a substantial eCommerce business. The Company's
portfolio includes branded merchandise from New York & Company,
Fashion to Figure, and Happy x Nature, and collaborations with Eva
Mendes, Gabrielle Union and Kate Hudson. The Company's branded
merchandise is sold exclusively at its retail locations and online
at www.nyandcompany.com, www.fashiontofigure.com, www.happyxnature.com, and through its rental
subscription businesses at www.nyandcompanycloset.com and www.fashiontofigurecloset.com. Additionally,
certain product, press releases and SEC filing information
concerning the Company are available at the Company's website:
www.nyandcompany.com.
Forward-looking Statements
This press release contains certain forward-looking statements,
including statements made within the meaning of the safe harbor
provisions of the United States Private Securities Litigation
Reform Act of 1995. Some of these statements can be identified by
terms and phrases such as “expect,” “anticipate,” “believe,”
“intend,” “estimate,” “continue,” “could,” “may,” “plan,”
“project,” “predict,” and similar expressions and references to
assumptions that the Company believes are reasonable and relate to
its future prospects, developments and business strategies. Such
statements, are subject to various risks and uncertainties that
could cause actual results to differ materially. These include, but
are not limited to: (i) the Company’s dependence on mall traffic
for its sales and the continued reduction in the volume of mall
traffic; (ii) the Company’s ability to anticipate and respond to
fashion trends; (iii) the impact of general economic conditions and
their effect on consumer confidence and spending patterns; (iv)
changes in the cost of raw materials, distribution services or
labor; (v) the potential for economic conditions to negatively
impact the Company's merchandise vendors and their ability to
deliver products; (vi) the Company’s ability to open and operate
stores successfully; (vii) seasonal fluctuations in the Company’s
business; (viii) competition in the Company’s market, including
promotional and pricing competition; (ix) the Company’s ability to
retain, recruit and train key personnel; (x) the Company’s reliance
on third parties to manage some aspects of its business; (xi) the
Company’s reliance on foreign sources of production; (xii) the
Company’s ability to protect its trademarks and other intellectual
property rights; (xiii) the Company’s ability to maintain, and its
reliance on, its information technology infrastructure; (xiv) the
effects of government regulation; (xv) the control of the Company
by its largest shareholder and any potential change of ownership of
the Company including the shares held by its largest shareholder;
(xvi) the impact of tariff increases or new tariffs; and (xvii)
other risks and uncertainties as described in the Company’s
documents filed with the SEC, including its most recent Annual
Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.
The Company undertakes no obligation to revise the forward-looking
statements included in this press release to reflect any future
events or circumstances.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200110005532/en/
Investor/Media Contact: ICR, Inc. Investor: Allison
Malkin (203) 682-8200
Grafico Azioni RTW Retailwinds (NYSE:RTW)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni RTW Retailwinds (NYSE:RTW)
Storico
Da Giu 2023 a Giu 2024