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Aeropostale Losses Accelerate, Closing More Stores

By  +Follow August 23, 2013 8:15AM
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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.

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Results for ARO
slick
29 Jul 15 17:43:31
$APP techinal breakout if big volume surge this past .30 this week.. $ZQK $ARO $plug
Circadian Group
29 Jul 15 11:51:48
$WOFA featured in: Investors Can Benefit from US Median Incomes Falling & Housing Crash http://t.co/E0w5PNrVys $RT, $ARO, $TUES
brian sweetheart
29 Jul 15 11:47:24
Voted top trading group. http://t.co/5eVXN8RJLp Related: $LPTN $AMRN $TPIV $CGNH $FBEC $ARO $AXMM
Stock Rocket
29 Jul 15 11:43:18
Intersting article about a new stock pick site. http://t.co/nU3hf3Cf56. Related: $UAPC $ARO $ACI $KEG $OCLS $IFCR $COLV $USAR
Wealthy Venture Cap
29 Jul 15 11:35:37
$WOFA featured in: #Investors Can Benefit from US Median Incomes Falling & Housing Crash #stocks http://t.co/tyVFkQCSJj $RT, $ARO, $TUES
Circadian Group
29 Jul 15 11:34:06
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29 Jul 15 11:30:47
$WOFA featured in Investors Can Benefit from US Median Incomes Falling & HousingCrash $WOFA article: http://t.co/4YMZsZGJMf $RT, $ARO, $TUES
Long & Short Ideas
29 Jul 15 11:00:15
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Seeking Alpha
29 Jul 15 11:00:14
Looking At An Existing Story From Another Angle http://t.co/mi0pyLWzTH $ARO
Stock Rocket
29 Jul 15 09:25:05
Intersting article about a new stock pick site. http://t.co/nU3hf3Cf56. Related: $UAPC $ARO $ACI $KEG $OCLS $IFCR $COLV $USAR
Cutlass
29 Jul 15 09:24:27
RT @TheTradeXchange: $ARO JAN 3 CALLS 1K @$.10 ON OFFER LEAPS
TradeXchange
29 Jul 15 09:19:11
$ARO JAN 3 CALLS 1K @$.10 ON OFFER LEAPS
Zero Filter
29 Jul 15 09:01:13
Right or wrong, with mkt intrigue toward unconventional ways co driving #BTS traffic to store, $ARO brushes off #UBS downgrade // $XRT $AEO
Kubilay Nacak
29 Jul 15 07:51:08
$ARO - Investors Can Benefit from US Median Incomes Falling & Housing Crash http://t.co/LBhmiwsbLZ
Pzaa...Guy
29 Jul 15 07:51:07
$ARO - Investors Can Benefit from US Median Incomes Falling & Housing Crash http://t.co/wHL27uLJXw
StockNews
29 Jul 15 07:51:06
$ARO - Investors Can Benefit from US Median Incomes Falling & Housing Crash http://t.co/iYjIDdGAfU
The Legacy News
29 Jul 15 07:13:15
Aeropostale Upgraded to “Buy” by Zacks $ARO http://t.co/h4DiY2v9rr
ProTradersNews
29 Jul 15 07:07:04
$ARO: Aeropostale Upgraded to “Buy” by Zacks (ARO): http://t.co/B0PydEIV73
Jack Trader
29 Jul 15 07:03:12
$ARO Aeropostale Inc (NYSE:ARO) Short Interest Update http://t.co/Y5NwKxuK1q
The Fly
29 Jul 15 07:01:05
On The Fly: Analyst Downgrade Summary $ARO $ADM $CIT $AI $BCEI $OFC $HCC $HNRG $IMMU $MDXG $MS $POT $RDWR $SWC... http://t.co/0CWvVHW0of
John F Presley
29 Jul 15 06:39:28
Aeropostale stung by UBS downgrade $ARO #stocks #trading #finance #investing http://t.co/jaf2GMkihX
zooey m
29 Jul 15 06:35:59
mediasentiment: $ARO received a new alert. Find out why at http://t.co/6A03PDuOjo #stocks #daytrading #trading #… http://t.co/X3n8d6GPom
Media Sentiment
29 Jul 15 06:35:16
$ARO received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 288
Consumer Stocks
29 Jul 15 06:33:24
Aeropostale stung by UBS downgrade http://t.co/tO8oOlaozo $ARO
Stocks On The Move
29 Jul 15 06:33:24
Aeropostale stung by UBS downgrade http://t.co/Ob6r8oPZMV $ARO
Breaking News
29 Jul 15 06:33:24
Aeropostale stung by UBS downgrade http://t.co/dQExCOpUKv $ARO
Wall Street
29 Jul 15 06:11:35
The Penny Stock Superstar team voted #1 OTC trading group. http://t.co/cQ0lLTokka Related: $JASO $STEV $SYN $ARO $PBMD
David Tuzzolino
29 Jul 15 06:09:15
$UBS drops $ARO to Sell. Analysts that follow co: 1 Buy, 15 Hold & 4 Sell. Hated stocks outperform. #valueinvesting http://t.co/zZQC1qCwT3
TipRanks Live Feed
29 Jul 15 05:57:21
4-star analyst Roxanne Meyer from UBS rated $ARO w/a SELL. Roxanne has a 71% success rate http://t.co/xOr23RQcUC #NYSE #stocks #ARO
dailystockplays.com
29 Jul 15 05:43:25
Why ARO Is DOWN In Premarket Trading http://t.co/p1jcokJII8 $ARO
Mark Trader
29 Jul 15 05:42:13
100% non-compensated picks at http://t.co/R6BGOmTldH. That is awesome. Related: $ARO $GSAT $PDLI $SPHS $XOMA $BIOS
Wall Street
29 Jul 15 05:40:34
The Penny Stock Superstar team voted #1 OTC trading group. http://t.co/cQ0lLTokka Related: $JASO $STEV $SYN $ARO $PBMD
Karl Eggerss
29 Jul 15 05:37:05
Street #downgrades: $YELP $MS $SWC $YELP $IMMU $RDWR $POT $OFC $MS $CIT $HCC $AI $BCEI $OFC $ADM $MDXG $ARO
DayTrading Ninja
29 Jul 15 05:30:08
Analyst Upgrades: $AMZN $FEYE $WFM $WFC $ARW $WFC $DDD $ALLY $CTXS $HIBB $SVU $WSM Downgrades: $YELP $ARO $ADM $POT 2015.07.29 08:30AM EST
zooey m
29 Jul 15 03:39:14
mediasentiment: $ARO received a new alert. Find out why at http://t.co/6A03PDuOjo #stocks #daytrading #trading #… http://t.co/X3n8d6GPom
Media Sentiment
29 Jul 15 03:38:27
$ARO received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 45
SIAnalystWire
29 Jul 15 03:37:23
UBS Downgrades Aeropostale, Inc. $ARO to Sell http://t.co/rQmvr83r0t
Gotham City Capital
28 Jul 15 18:09:02
@07canoebay But if we see that volume spike tomorrow on that buy w/MACD cross I like.. $ARO.. watching
Gotham City Capital
28 Jul 15 18:08:42
@07canoebay $ARO I like if the volume comes in. MACD cross not enough to grab trade alone.. http://t.co/WnESr8R9KH
Gotham City Capital
28 Jul 15 18:04:13
@07canoebay Wow.. Good find.. MACD cross.. $ARO.. Like this one..
pennypicker
28 Jul 15 14:27:38
$ARO stock is 1.45. Don't ever buy that stock. No one shops there (well clearly you can see that just from the stock price).
Ticker Report
28 Jul 15 13:42:03
Aeropostale Upgraded by Zacks to Buy $ARO http://t.co/vlgdePwym4
Alexander Morris
28 Jul 15 11:35:04
$ARO: Exc 1DyHIGH=1.47, hits:2, ch:+3.5%, FltBO-, AtgPivH4, tf:0111111, medFlt:62M, HiPctSht[30%:8d], 9LoDays:29%, DyVol:1.04M:0.6x:0.4x
Capital Market Labs
28 Jul 15 09:04:12
$ARO Worst Fundamental Rating -> http://t.co/DMTV0X16w6 http://t.co/rqb60UbYXx
Wall Street
28 Jul 15 08:13:41
The Penny Stock Superstar team voted #1 OTC trading group. http://t.co/cQ0lLTokka Related: $JASO $STEV $SYN $ARO $PBMD
Mark Trader
28 Jul 15 07:56:42
100% non-compensated picks at http://t.co/R6BGOmTldH. That is awesome. Related: $ARO $GSAT $PDLI $SPHS $XOMA $BIOS
investor wired
28 Jul 15 07:24:39
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DailyStockPicks
28 Jul 15 07:20:48
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Evan Shweky
28 Jul 15 06:35:53
Sold our 4k sh position in $XOMA @ $0.8379 for a loss of ($400). Still long 5k sh. of $CHK and 7400 sh of $ARO. #stocks #trade #daytrade
Zero Filter
28 Jul 15 06:26:35
My wife after BTS shopping yesterday with kids mall "With those $10 gift cards being handed out $ARO most crowded store there" // $XRT $AEO
				
				
By  +Follow August 23, 2013 8:15AM
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