RTW Retailwinds, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended November 3, 2018. For the quarter, net sales were $210,758,000 against $214,182,000 a year ago. Operating income was $1,573,000 against $618,000 a year ago. Net income was $1,725,000 against $352,000 a year ago. Basic and diluted earnings per share were $0.03 against $0.01 a year ago.

For nine months, net sales were $645,957,000 against $648,155,000 a year ago. Operating income was $8,105,000 against $1,922,000 a year ago. Net income was $7,878,000 against $928,000 a year ago. Basic and diluted earnings per share were $0.12 against $0.01 a year ago.

For the Fall season, combined third and fourth quarter of fiscal year 2018, the Company expects comparable store sales to be approximately flat. The Company expects GAAP operating income to be in the range of $2.5 million to $4.5 million, inclusive of approximately $3 million of non-operating expenses including $1 million of charges reported as non-GAAP adjustments, and new business start-up costs of $2 million, as compared to prior guidance of $5.5 million to $7.5 million.

For the fourth quarter, the Company is expecting GAAP operating income of $1 million to $3 million, as compared to a GAAP operating income of $5.0 million in the prior year. Net sales are expected to decrease in the mid to high single-digit range, reflecting the elimination of the 53rd week and reduced store count, partially offset by benefits due to the growth in eCommerce sales and inclusion of Fashion to Figure. Comparable store sales, which are shifted to compare like calendar weeks, are expected to be approximately flat.

Regarding expectations for the fiscal year 2018, the continue to focus on improving operating results to drive increases in both operating income and EBITDA.