New York & Company, Inc. to Exit JasmineSola to Focus on Higher Return Opportunities
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New York & Company, Inc. [NYSE:NWY],
a specialty apparel chain, today announced that following a thorough
review of strategic alternatives for its JasmineSola store concept, the
Company has decided to exit the 23 store JasmineSola chain by the end of
the fourth quarter of fiscal 2007. This decision enables the Company to
focus future investments on higher return opportunities within its New
York & Company brand.
Richard P. Crystal, New York & Company’s
Chairman and CEO, stated: "We believe that we
can generate greater shareholder value by directing our resources and
capital towards growth initiatives within our core New York & Company
brand and therefore have made the difficult decision to exit the
JasmineSola business.”
In connection with today’s announcement, the
Company currently expects to incur after tax charges to exit the
JasmineSola business of approximately $28.0 to $30.0 million over the
third and fourth quarters of fiscal 2007. The majority of these charges
are expected to be non-cash impairments of intangible assets and store
level property and equipment. The Company is exploring opportunities to
convert existing JasmineSola locations to its New York & Company concept
and to redeploy JasmineSola associates to positions in New York &
Company, where feasible.
Forward-Looking Statements: This press release contains certain
forward-looking statements. Some of these statements can be identified
by terms and phrases such as "anticipate,” "believe,” "intend,” "estimate,” "expect,” "explore”, "continue,” "could,” "may,” "plan,” "project,” "predict”, and
similar expressions and include references to assumptions that we
believe are reasonable and relate to our 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) our ability to open and
operate stores successfully and the possible lack of availability of
suitable locations on acceptable terms; (ii) seasonal fluctuations in
our business; (iii) our ability to anticipate and respond to fashion
trends, develop new merchandise and launch new product lines
successfully; (iv) general economic conditions, consumer confidence and
spending patterns; (v) our dependence on mall traffic for our sales;
(vi) the susceptibility of our business to extreme and/or unseasonable
weather conditions; (vii) our ability to retain, recruit and train key
personnel; (viii) our reliance on third parties to manage some aspects
of our business; (ix) changes in the cost of raw materials, distribution
services or labor, including federal and state minimum wage rates; (x)
our reliance on foreign sources of production, including the disruption
of imports by labor disputes, political instability, legal and
regulatory matters, duties, taxes, other charges and quotas on imports,
local business practices, potential delays in shipping and related
pricing impacts and political issues and fluctuation in currency and
exchange rates; (xi) the potential impact of natural disasters and
health concerns relating to outbreaks of widespread diseases,
particularly on manufacturing operations of our vendors; (xii) the
ability of our manufacturers to manufacture and deliver products in a
timely manner while meeting our quality standards; (xiii) our ability to
efficiently execute our exit strategy related to the JasmineSola
business; (xiv) our ability to service any debt we incur from time to
time as well as our ability to maintain the requirements that the
agreements related to such debt impose upon us; (xv) the potential
impact of national and international security concerns on the retail
environment, including any possible military action, terrorist attacks
or other hostilities; (xvi) our reliance on manufacturers to maintain
ethical business practices; (xvii) our ability to protect our trademarks
and other intellectual property rights; (xviii) our ability to maintain
and our reliance on our information systems infrastructure; (xix) our
dependence on the success of our brand; (xx) competition in our market,
including promotional and pricing competition; (xxi) our reliance on the
effective use of customer information; (xxii) the effects of government
regulation; (xxiii) the control of our company by our sponsors; and
(xxiv) other risks and uncertainties as described in our documents filed
with the SEC, including our Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q. We undertake no obligation to revise the
forward-looking statements included in this press release to reflect any
future events or circumstances.
About New York & Company, Inc.
New York & Company, Inc., founded in 1918, is a leading specialty
retailer of fashion-oriented, moderately-priced women’s
apparel. The Company’s proprietary branded New
York & Company ™ merchandise is
sold exclusively through its national network of New York & Company
retail stores and online at www.nyandcompany.com.
The Company currently operates 561 New York & Company retail stores in
44 states. Additionally, certain product, press release and SEC filing
information concerning the Company are available at the Company’s
website: www.nyandcompany.com.
