New York & Co. announces multibrand transformation; changes name to RTW Retailwinds
Women's apparel brand New York & Company has announced its corporate reinvention as a multibrand lifestyle platform, beginning with a name change to "RTW Retailwinds." Company shares rose by more than 2 percent in the extended session after the announcement.
In a release, New York & Co. said the new name is a better representation of the company's "ability to grow the portfolio of lifestyle brands into new categories and markets."
The change accompanies a slew of strategies designed to refresh the company as it aims to become "the premier incubator of lifestyle brands". Other plans include extending its newly minted plus-size brand Fashion to Figure and debuting several new brands, including a lingerie lifestyle line and the Kate Hudson Collection.
Greg Scott, the company's chief executive officer, said that New York & Co. plans to use its “expertise to accelerate sales and profitability[...] expanding the core New York & Company brand while also incubating new brands." He continued, "our goal is to drive sales to well over $1 billion and double digit EBITDA margins."
John Howard, co-managing partner of Irving Place Capital and member of the New York & Company Board of Directors added that RTW Retailwinds will use "a strengthened operating model that leverages design capabilities, sourcing expertise, digital platform, and operational foundation that will incubate new brands with a significant digital presence and strong loyalty base and deliver long term profitability."
According to Scott, over 30% of New York & Co.'s sales come from e-commerce. This year, the company had its highest gross margin rate in the second quarter since 2005, and is on track to achieve adjusted EBITDA of between $35 million and $37 million for the fiscal year (up from adjusted EBITDA of $30.5 million in fiscal year 2017).
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