New York & Company, Inc. (NWY)

New York and Company is a specialty retailer of fashion-oriented, moderately priced women's apparel. They offer a merchandise assortment consisting of casual and wear-to-work apparel and accessories including sweaters, active wear, t-shirts, handbags and jewelry. The company operates 560 retail stores across 45 U.S states including 23 JasmineSola stores.
   
New York and Company targets fashion-conscious women between the ages of 25 and 45. The disposable income of this group is high with 52% of the population in the target age group being females. The third quarter performance of the company has also been good with 131% growth in the net income as a result of rising sales and leverage in operating expenses. Top-line growth of 6% was primarily attributable to the opening of new stores. In a highly competitive market, New York and Company has been able to perfectly align their merchandise assortments with the customer demand, which resulted in increased customer traffic. To keep this momentum alive they plan to open 20 and remodel 4 more stores in the fourth quarter. With positive third quarter results and in-line November and December results, management expects about 11% sales growth in the fourth quarter also.

The coming fiscal could be a prosperous year for the company as a result of merchandising initiatives in active wear and body shaper categories. They are also experiencing growth in their key offerings that include sweaters, outerwear and city stretch pants. Moreover, the company has upgraded their handbag and accessories assortments, which could also drive volumes in future. With consistent revenue growth and positive same store sales over the years, this scrip is expected to shine.