RTW Retailwinds reports underwhelming 2019, announces CEO transition
Mar 20, 2020
RTW Retailwinds, Inc., the NYC-based owner of New York & Company, Fashion to Figure, and Happy x Nature, reported disappointing fourth-quarter and full-year sales and earnings on Thursday and announced the appointment of Traci Inglis as its new CEO, as well as a range of measures being taken by the company to combat the spread of Covid-19.
For the fourth quarter ended February 1, 2020, the company’s net sales totaled $224.0 million, a decrease of 9.4% as compared to $247.3 million in the prior-year period. This decline reflected a 7.4% decline in comparable sales, partially offset by growth in RTW Retailwind’s e-commerce business, as well as its Fashion to Figure brand.
Quarterly net loss was $40.2 million, or $0.62 per diluted share, widening from a loss of $3.6 million, or $0.06 per diluted share, in the fourth quarter of fiscal 2018.
In the full fiscal year 2019, RTW Retailwinds’ net sales fell 7.4% to $827.0 million, compared to $893.2 million in fiscal 2018, reflecting a reduction in store count, partially offset be e-commerce growth and the addition of the Fashion to Figure brand to the company’s portfolio. Comparable-store sales fell 5.4% year over year.
Annual net loss was $61.6 million, or $0.96 per diluted share, compared to net income of $4.2 million, or $0.06 per diluted share, in the previous year.
“We continue our strategic transition to a digitally dominant retailer supported with a portfolio of celebrity and lifestyle brands that unlock distinct market opportunities,” commented RTW Retailwinds CEO Gregory Scott in a release. “While we delivered near record results in 2018, we were disappointed with our fourth quarter and fiscal 2019 performance stemming from declines in store traffic and continued weakness in our casual lifestyle sub-brand.”
In a separate release published on Thursday, RTW Retailwinds also announced that Scott, who has led the company for close to a decade, will be relocating to California for personal reasons and is stepping down from his role as CEO.
He will be succeeded by Traci Inglis, who is currently president and chief marketing and customer officer at the company and will step into her new role starting April 17.
Inglis first joined RTW Retailwinds in June 2019, having spent just over five years at TechStyle Fashion Group, where she held roles including president for global fashion brands and chief marketing officer for the fast fashion division.
The executive’s previous experience also includes just under two years spent as director of digital marketing, CRM and customer marketing at Hot Topic, and five years at Westfield, serving as director and then senior director of strategy and market research.
Inglis, who holds a BSBA from The Ohio State University’s Fisher College of Business, began her career at Alliance Data, before joining Express in 2003.
“I believe the time is right to transition the CEO role to Traci – as her experience is aligned with where RTW is going in the future,” said Scott. “I believe that her digital, marketing and fashion background combined with her strong business acumen will not only allow for a seamless transition of the CEO role, but will also accelerate RTW’s path to a more preeminent position in the industry.”
As the novel coronavirus Covid-19 continues to spread, RTW Retailwinds has also announced that it is following the lead of a number of U.S. retailers and temporarily closing its stores through March 28. The company will continue to provide retail employees with compensation for scheduled shifts during this period.
Due to the uncertainty caused by the global health crisis, RTW Retailwinds has not provided financial guidance for the first quarter currently in progress or for the full fiscal year 2020.
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