RTW Retailwinds Inc (NYSE: RTW) was a big loser in Friday’s trading session. The stock edged lower by 22.48% to close the day at $1. This followed the release of Q3 results that indicated a decline in net sales. The company reported net sales of $200.1 million, a figure lower than in a similar period in the last financial year when the company reported net sales of $210.8 million.
The company also reported a decline in store count. The number of stores in operation reduced by 14 compared to a similar quarter in the last financial year. Nonetheless, this was balanced-off by an increase in sales from the new business that the company generated.
The company also reported a decrease in Gross profits as a percentage of sales by 460 basis points. In Q3, the company recorded a gross profit as a percentage of revenue of 27.8%. This was lower than the 32.4% recorded in a similar period in the last financial year. The company stated that reduced gross profit margins were due to an increase in shipping costs. It also attributed this to a deleveraging of occupancy costs.
On top of that, the company reported that selling and general expenses also increased compared to a similar period in the last financial year. In the quarter, expenses stood at $67.7 million representing 33.8% of its net sales. In a similar quarter in the last financial year, the company had expenses of $66.8 million representing 31.7% of the company’s net sales.
Looking at the charts, this stock has been trading between $1.25 and $0.96 before closing the day at $1.00. Volumes in the day stood at 334.58k.
About RTW Retailwinds Inc
RTW Retailwinds Inc is a specialty retailer that operates in the U.S. The company has its headquarters in New York, New York.