Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?



Aeropostale Losses Accelerate, Closing More Stores

By  +Follow August 23, 2013 8:15AM
Tickers Mentioned:

Joining a growing list of retailers to limp through the second quarter, Aeropostale, Inc. (ARO) delivered its financial report for the quarter that was short on both top and bottom lines.  The mall-based specialty retailer further delivered bleak guidance for the current quarter and said it is shuttering more stores than it originally anticipated. To a degree, the soft report was expected as the company pre-announced that sales were falling, but that didn't stop shares from getting hammered in after-hours trading.

Net sales for the quarter ended August 3 fell by 6 percent to $454.0 million from $485.3 mllion in the second quarter last year.  Wall Street was expecting revenue of $453.97 million.

The company reported a net loss of $33.7 million, or 43 cents per share, compared to a net profit of $71,000, or nil per share, in last year’s quarter.  On an adjusted based, which excludes one-time items like after-tax charges, the net loss was trimmed to $26.9 million, or 34 cents per share.  Analysts were expecting an adjusted net loss of 34 cents per share.

Same-store sales, a closely watched metric of growth that compares sales at stores open more than one year, decreased by 15 percent compared to the second quarter of 2012.  Aeropostales’ comparable sales include its e-commerce business as well.

Net sales from the e-commerce business rose 22 percent to $39.0 million from $31.9 million last year, but also included revenue from the company’s purchase of GoJane.com in November 13, 2012.

Deep discounts stung gross profit margin, which fell 740 basis points to 17.9 percent.

“Our business was pressured by a challenging teen retail environment with weak traffic trends and high levels of promotional activity.  Our results were particularly disappointing given the level of change we have registered with the Aeropostale brand in recent periods," said Thomas P. Johnson, chief executive at Aeropostale in a statement.

During the quarter, the company closed 9 Aeropostale stores and one of its P.S. from Aeropostale stores.  The New York-based company previously said that it would be closing between 15 and 20 Aeropostale stores during 2013.  Today, they hiked that number to between 30 and 40 locations.

To make matters worse, the company said it expects to lose between 21 cents and 26 cents per share during the third quarter as it continues to face hefty headwinds from a lot of promotions in the competitive teen retail environment, even through the back-to-school period.  Analysts were expecting earnings of 25 cents per share.  In the third quarter of 2012, Aeropostale banked a profit of 31 cents per share.

Companies focused on teen apparel have been getting lumped up recently as their core market seems to be shifting to different brands and what they spend their money on, often preferring electronics it seems. Abercrombie & Fitch (ANF) , once one of the hottest brands around, whiffed on second-quarter results today as well, sending shares 17.7 percent lower. American Eagle (AEO) delivered soft guidance on Wednesday, pitching shares from $16.40 to $14.75.  The circle of lower sales and profits is being perpetuated as each of the companies is on a slashing prices spree trying to lure in shoppers.

Shares of ARO have had a tough month, to say the least.  From a high of $15.73 on August 1, shares have sunk 30 percent through Thursday’s close at $10.98.  The bleeding is not stopping in extended trading following the earnings report, with shares down to $9.70 an hour after the news hit.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for ARO
TalkMarkets Recap
27 May 15 17:09:03
Bye Bye Abs: #Abercrombie Hopes Latest Changes Will Spur Sales $ANF $AEO Also $ARO http://t.co/jRLim62udr
Rosbel Duran
27 May 15 15:51:59
RT @SeekingAlpha: Is The End Nigh For Bon-Ton Stores? http://t.co/xazY8OELIT $ARO $BONT
Long & Short Ideas
27 May 15 15:41:24
Is The End Nigh For Bon-Ton Stores? http://t.co/QGYNWsSuai $ARO $BONT
Seeking Alpha
27 May 15 15:41:24
Is The End Nigh For Bon-Ton Stores? http://t.co/xazY8OELIT $ARO $BONT
TalkMarkets Recap
27 May 15 15:39:03
#Bull Of The Day: #AmericanEagle (AEO) $AEO Also $ANF $ARO http://t.co/ObgHnBwzT5
Dakota Financial
27 May 15 15:24:26
Aeropostale Lowered to “Sell” at Zacks $ARO http://t.co/SYkXHEO0b2
Media Sentiment
27 May 15 15:22:42
$ARO received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 509
US Banking News
27 May 15 15:22:26
Aeropostale Downgraded by Zacks to Sell $ARO http://t.co/uiRkFyYRiT
27 May 15 15:15:03
$ARO: Aeropostale Lowered to Sell at Zacks (ARO): http://t.co/YJ5j9r65fm
US Consumer News
27 May 15 15:14:15
Aeropostale downgraded by Zacks to sell. http://t.co/wzljZBerLi $ARO #ARO
Ticker Report
27 May 15 15:11:54
Aeropostale Lowered to Sell at Zacks $ARO http://t.co/sZs13w4dfd
Media Sentiment
27 May 15 15:11:14
$ARO received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 487
Analyst Ratings
27 May 15 15:09:41
Aeropostale downgraded by Zacks to sell. http://t.co/C9Du4Sny25 $ARO #ARO
Ophir Gottlieb
27 May 15 14:09:53
$ARO down -1.42% to New 52 Week Low #CML_ARO http://t.co/yArW6Ic9dQ http://t.co/CCk3CLbzlb
27 May 15 12:51:04
YOKU Youku Tudou, Inc. Current Price http://t.co/0524WizhTX $YOKU $ARO $GOOG $NKE #YOKU #share #investing
27 May 15 12:48:39
UUP PowerShares DB US Dollar Index Bullish Fund Bid Size http://t.co/8COFypGli2 $UUP $SGY.TO $NOC $ARO #UUP #share #stocks
27 May 15 12:43:05
#Bull Of The Day: #AmericanEagle (AEO) $AEO Also $ANF $ARO http://t.co/CQwDZgsCJn
Investors Hangout
27 May 15 12:40:38
KORS Michael Kors Holdings Ltd. Ask Size http://t.co/5x9TfPv0G9 $KORS $JNK $ARO $RSX #KORS #share #finance
27 May 15 12:39:21
HIMX Himax Technologies Inc. Last Price http://t.co/6Pnb4XDEGQ $HIMX $ARO $YOKU $MNKD #HIMX #finance #stock
Evan Shweky
27 May 15 12:36:50
27 May 15 12:34:06
CSIQ Canadian Solar Inc. EOD Data http://t.co/ZeBzdqbMea $CSIQ $ARO $IBM $CAT #CSIQ #stock #stock
Rosner Stocks
27 May 15 12:32:09
ARO Aeropostale Inc. Dividend http://t.co/a2VslnfobG $ARO $FEYE $YOKU $T #ARO #investing #finance
Investors Hangout
27 May 15 12:32:08
ARO Aeropostale Inc. Yield http://t.co/dvgyCFMWFA $ARO $LUV $UCO $YOKU #ARO #stocks #finance
Investors Hangout
27 May 15 12:32:08
ARO Aeropostale Inc. Financials http://t.co/l4ae5AldcK $ARO $ENZN $ABX.TO $CYBR #ARO #investing #invest
27 May 15 12:31:06
AA Alcoa, Inc. News http://t.co/zE0BmdDoNp $AA $OPXA $ARO $FXI #AA #stocks #pennystocks
27 May 15 12:25:07
9 Worst Analyst Rated Stocks in the Last 72hrs: $NTAP $ARO $ROST $LB $GPS $DE $HIBB $TFM $WSM View all ratings here: https://t.co/c9pZ4R8GEm
27 May 15 12:21:03
6 Most Analyst Rated Stocks in Last 7 Days: $CRM $NTAP $MRVL $GPS $ARO $HPQ View all ratings here: https://t.co/1yGqm1kMFW
27 May 15 11:43:07
PCLN http://t.co/J94q0lpWmb Inc. Bid http://t.co/sNW6pRSclS $PCLN $CONN $ARO $XLE #PCLN #finance #finance
Yu Zhu
27 May 15 11:39:20
RT @Estimize: Bye Bye Abs: Abercrombie Hopes Latest Changes will Spur Sales $ANF $SPY $ARO $AEO http://t.co/qCUqCwdWiM http://t.co/lFOJo3lT…
Investors Hangout
27 May 15 11:33:33
CONN Conn's, Inc. Volume http://t.co/dEPWDtLw9X $CONN $ARO $RSP $JBLU #CONN #share #investing
27 May 15 11:32:06
ARO Aeropostale Inc. Day High http://t.co/857nXTXg9A $ARO $BLUE $XLV $FRO #ARO #nasdaq #stockmarket
Rosner Stocks
27 May 15 11:31:41
ABIO ARCA biopharma, Inc. 52Wk Low http://t.co/4zEixxZIKc $ABIO $CAT $ARO $TSL #ABIO #finance #finance
BNK Invest
27 May 15 11:25:26
$ARO Insiders vs. Shorts #stocks http://t.co/nSEGuvgS5M
Stock Trade Alerts
27 May 15 11:24:30
RT @Estimize: Bye Bye Abs: Abercrombie Hopes Latest Changes will Spur Sales $ANF $SPY $ARO $AEO http://t.co/qCUqCwdWiM http://t.co/lFOJo3lT…
27 May 15 11:17:25
Bye Bye Abs: Abercrombie Hopes Latest Changes will Spur Sales $ANF $SPY $ARO $AEO http://t.co/qCUqCwdWiM http://t.co/lFOJo3lTds
Lucky Jimmy
27 May 15 10:33:08
BABA Alibaba Group Holding Ltd. Stock Forum http://t.co/s2I03x1KzL $BABA $ARO $COP $SLV #BABA #invest #stocks
27 May 15 10:32:07
ARO Aeropostale Inc. Stock Message Board http://t.co/mqjM94yMwG $ARO $SVXY $FXE $QRVO #ARO #nasdaq #stocks
27 May 15 10:31:38
$ARO Aeropostale Inc (ARO) Stock Price Plunges 22% After Q1 Sales Tumble, Teen ... http://t.co/uDyPMrkkCU
27 May 15 10:28:39
Bye Bye Abs: #Abercrombie Hopes Latest Changes Will Spur Sales $ANF $AEO Also $ARO http://t.co/YrywweT8To
27 May 15 10:03:49
Abercrombie & Fitch's Business Transition Will Weigh On Its Q1 Results http://t.co/SLMy5AmpXc by Trefis Team $ANF $AEO $ARO
Investors Hangout
27 May 15 09:48:17
TWTR Direxion Daily Small Cap Bear 3x Shares Bid http://t.co/Yv8hpiLOo5 $TWTR $MRK $ARO $CLDN #TWTR #share #stocks
27 May 15 09:48:12
UCO ProShares Ultra DJ-UBS Crude Oil Investor Opinions http://t.co/QIPW9ObXkT $UCO $ARO $GLD $MOMO #UCO #invest #investing
27 May 15 09:45:59
SHAK Shake Shack Inc. Exchange http://t.co/R8scK5GBOO $SHAK $ARO $X $FTNT #SHAK #invest #finance
Rosner Stocks
27 May 15 09:43:45
PLI.TO ProMetic Life Sciences, Inc. Market Cap http://t.co/DX65AHox6V $PLI.TO $ARO $SVXY $WUBA #PLI.TO #nasdaq #nasdaq
27 May 15 09:43:35
PLUG Plug Power, Inc. Shares http://t.co/U75Bqg4RSk $PLUG $TBT $ARO $MOMO #PLUG #stockmarket #stockmarket
27 May 15 09:42:24
NFLX Netflix, Inc. 52Wk High http://t.co/dOamvr8QRa $NFLX $SVXY $ARO $KATE #NFLX #investing #tradeideas
27 May 15 09:42:22
NAT Nordic American Tanker Shipping Ltd. Ask http://t.co/Am99Y86ama $NAT $ARO $PG $SHAK #NAT #nasdaq #stock
27 May 15 09:40:39
LVS Las Vegas Sands Corp. Financials http://t.co/5BYxO3iOld $LVS $ARO $DGAZ $BIDU #LVS #stock #finance
27 May 15 09:40:39
JNK SPDR Barclays High Yield Bond ETF Open http://t.co/oJAzZoJD5K $JNK $DIA $TSL $ARO #JNK #finance #stock
27 May 15 09:39:40
INTC Intel Corp. Ask Size http://t.co/TC4lN1BUAG $INTC $X $ARO $IYR #INTC #stock #stockmarket
By  +Follow August 23, 2013 8:15AM



blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register