logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Aeropostale Losses Accelerate, Closing More Stores

By  +Follow August 23, 2013 8:15AM
Share:
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.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for ARO
Greg David
29 Jan 15 10:22:25
http://t.co/m2LNLuLe8I does trade alerts differently than anyone else. Its super cool. $PTRC $LXRX $NYMT $ARO $EXRC
#HelpYouGetGAINS
29 Jan 15 09:45:42
RT @ValueLine: There have been several noteworthy developments in the #retail space. $WMT $TGT $KORS $FDO $DG $DLTR $TLYS $ARO http://t.co/…
Trefis.com
29 Jan 15 09:24:48
Little Respite For American Eagle In The Holiday Season http://t.co/65HErGxx0o by Trefis Team $AEO $ARO $ANF
Value Line
29 Jan 15 09:12:22
There have been several noteworthy developments in the #retail space. $WMT $TGT $KORS $FDO $DG $DLTR $TLYS $ARO http://t.co/WIJznIFrZl
Mark Trader
29 Jan 15 09:04:46
The last http://t.co/8hGh2pPo4U alert popped over 400%. So sweet and free to sign up. $ARO $PKD $SALT $PPP $COTE $LF $NAVB
PennyStocker
29 Jan 15 07:30:18
Wow the last pick from http://t.co/p3LC54YE49 popped over 450%. Nice for being free. $EOX $ARO $SONS $BHRT
ProVesting
29 Jan 15 05:21:05
$ARO $ATRS: No liabilities, No problem? Aeropostale Inc (ARO), Antares Pharma ...: http://t.co/4xOAEHglb8
Wall Street
28 Jan 15 19:30:59
Article about a new type of penny stock website. http://t.co/JNK4kapBq0 $HYSR $EXXI $CYTR $UMC $ARO $PAL $ERHE $FMCC
optionboost
28 Jan 15 18:30:58
RT @StockSignaling: Movers and Shakers: $TKMR $P $BITA $FEYE $SN $CONN $ARO $SUNE $KBH $OAS $CLF $AMBA $SLXP $LOCO $JCP http://t.co/S9oPUZ8…
Stock Signaling
28 Jan 15 18:01:36
Movers and Shakers: $TKMR $P $BITA $FEYE $SN $CONN $ARO $SUNE $KBH $OAS $CLF $AMBA $SLXP $LOCO $JCP http://t.co/S9oPUZ8PN3 #daytrading #nyse
StockNewsWires
28 Jan 15 10:46:02
$ARO: Aeropostale's Revised Q4 Guidance Isn't Promising As Its Old Story ...: http://t.co/nHahhKVbRT
Trefis.com
28 Jan 15 10:28:33
Aeropostale's Revised Q4 Guidance Isn't Promising As Its Old Story Continues http://t.co/S1eOQNMSj6 by Trefis Team $ARO $AEO $ANF
Greg David
28 Jan 15 08:57:49
http://t.co/m2LNLuLe8I does trade alerts differently than anyone else. Its super cool. $PTRC $LXRX $NYMT $ARO $EXRC
PennyStocker
28 Jan 15 08:28:52
Wow the last pick from http://t.co/p3LC54YE49 popped over 450%. Nice for being free. $EOX $ARO $SONS $BHRT
Mark Trader
28 Jan 15 07:57:16
The last http://t.co/8hGh2pPo4U alert popped over 400%. So sweet and free to sign up. $ARO $PKD $SALT $PPP $COTE $LF $NAVB
lookn4wins
28 Jan 15 05:25:30
Stocks Trending Now: http://t.co/3At6WLra8p $TMBCF $NTFL $ESS $LLY $MRMBF $ROTH $LVNTB $BGAVF $CVD $LWAY $TDCAF $ARO ~
Penny Stock Secret
27 Jan 15 18:46:06
This Guy Turned $100 into over $10,000 In Just 30 Days! http://t.co/vezCDY95do .. $ARO $ARP $ARPI
Leni
27 Jan 15 13:05:01
I still like $ARO here at this level although its not liking me so far. Holding its level still so Im still in.
James P Worthy
27 Jan 15 13:02:54
$ARO Why Aeropostale Inc's Stock Has Crashed 68% in 2014 http://t.co/tXmqcrV1ZT
Dreams.
27 Jan 15 12:39:36
Que alguien me explique porque chingados esto cuesta tan $aro http://t.co/SKZFGPeJOP
Duke Rexx
27 Jan 15 12:08:52
$ARO added some more today, still slowly accumulating.
Jeffrey Blake
27 Jan 15 11:03:57
$ARO Aeropostale Still Doesn't Look Worth The Risk (ARO) http://t.co/kA5f0x6Qm3
Clair Voight
27 Jan 15 11:03:56
$ARO Why Aeropostale Inc's Stock Has Crashed 68% in 2014 http://t.co/YwZOMDRMbz
Mark Trader
27 Jan 15 10:55:59
The last http://t.co/8hGh2pPo4U alert popped over 400%. So sweet and free to sign up. $ARO $PKD $SALT $PPP $COTE $LF $NAVB
PennyStocker
27 Jan 15 10:28:54
Wow the last pick from http://t.co/p3LC54YE49 popped over 450%. Nice for being free. $EOX $ARO $SONS $BHRT
Greg David
27 Jan 15 08:51:27
http://t.co/m2LNLuLe8I does trade alerts differently than anyone else. Its super cool. $PTRC $LXRX $NYMT $ARO $EXRC
PennyStocker
27 Jan 15 08:19:02
Wow the last pick from http://t.co/p3LC54YE49 popped over 450%. Nice for being free. $EOX $ARO $SONS $BHRT
Alexander Morris
27 Jan 15 06:46:12
$ARO: At 1DyHIGH=2.83, hits:1, ch:+1.4%, 3NewHi, AtgPivH3, tf:1011011, medFlt:59M, HiPctSht[28%:6d], DyVol:98T:0.1x:0x, DyRng:3.9%:0.9x:0.6x
Dragoslava Follis
27 Jan 15 06:25:36
RT @urbinarestrepo - Earnings from $ARO $ANF suggest that current conditions in the TeenYoungAdult RetailSpace are chall
Langan Stocks
27 Jan 15 04:40:09
Stocks Trending Now: http://t.co/TkLSaz2n0F $ARO $ESE $WAT $OLIE $JMT $PRFZ $KLSC $DTSRF $SNHN $SHALF $YNGDF $KS ~
Stock Rocket
27 Jan 15 04:17:12
Check out http://t.co/5jbX6mNKQv. They have a cool and different way of doing trade alerts. Pretty cool. $MNKD $LNCO $AGEN $SID $ARO $RSH
Mark Trader
27 Jan 15 03:58:30
The last http://t.co/8hGh2pPo4U alert popped over 400%. So sweet and free to sign up. $ARO $PKD $SALT $PPP $COTE $LF $NAVB
Trader News Daily
27 Jan 15 03:49:33
Wow http://t.co/PeRPkZkWiw just posted last weeks results. +429%. Crazy. They offer a free trial too. $EXK $NRTI $ZGNX $WEST $ARO
PennyStocker
26 Jan 15 11:26:54
Wow the last pick from http://t.co/p3LC54YE49 popped over 450%. Nice for being free. $EOX $ARO $SONS $BHRT
Daily Contracts
26 Jan 15 11:20:01
Real-Time feed of company contracts, original agreements and executive updates from Aéropostale $ARO http://t.co/FqjcZjvBSB
Peter Bardens
26 Jan 15 06:03:44
$ARO Aeropostale Still Doesn't Look Worth The Risk (ARO) http://t.co/t1epizYOjH
Daily Contracts
26 Jan 15 05:50:00
Real-Time feed of company contracts, original agreements and executive updates from Aéropostale $ARO http://t.co/FqjcZjvBSB
PennyStocker
26 Jan 15 05:01:40
Wow the last pick from http://t.co/p3LC54YE49 popped over 450%. Nice for being free. $EOX $ARO $SONS $BHRT
ProVesting
26 Jan 15 01:01:04
$ESRX $ARO: Stocks Underperform for the Week: Express Scripts Holding Co ...: http://t.co/gnHZ8hoB8o
John Jackson
25 Jan 15 18:15:33
RT @StockSignaling: Movers and Shakers: $TKMR $P $BITA $FEYE $SN $CONN $ARO $SUNE $KBH $OAS $CLF $AMBA $SLXP $LOCO $JCP http://t.co/S9oPUZ8…
Fredrick
25 Jan 15 18:10:26
RT @StockSignaling: Movers and Shakers: $TKMR $P $BITA $FEYE $SN $CONN $ARO $SUNE $KBH $OAS $CLF $AMBA $SLXP $LOCO $JCP http://t.co/S9oPUZ8…
Stock Signaling
25 Jan 15 18:01:24
Movers and Shakers: $TKMR $P $BITA $FEYE $SN $CONN $ARO $SUNE $KBH $OAS $CLF $AMBA $SLXP $LOCO $JCP http://t.co/S9oPUZ8PN3 #daytrading #dow
Wall Street
25 Jan 15 17:40:06
Article about a new type of penny stock website. http://t.co/JNK4kapBq0 $HYSR $EXXI $CYTR $UMC $ARO $PAL $ERHE $FMCC
PennyStocker
25 Jan 15 16:12:10
Wow the last pick from http://t.co/p3LC54YE49 popped over 450%. Nice for being free. $EOX $ARO $SONS $BHRT
Mark Trader
25 Jan 15 15:36:00
The last http://t.co/8hGh2pPo4U alert popped over 400%. So sweet and free to sign up. $ARO $PKD $SALT $PPP $COTE $LF $NAVB
Edgar
24 Jan 15 23:56:21
RT @StockSignaling: Movers and Shakers: $TKMR $P $BITA $FEYE $SN $CONN $ARO $SUNE $KBH $OAS $CLF $AMBA $SLXP $LOCO $JCP http://t.co/S9oPUZ8…
James DiPlata
24 Jan 15 18:14:02
RT @StockSignaling: Movers and Shakers: $TKMR $P $BITA $FEYE $SN $CONN $ARO $SUNE $KBH $OAS $CLF $AMBA $SLXP $LOCO $JCP http://t.co/S9oPUZ8…
NewsTalk
24 Jan 15 18:07:59
RT @StockSignaling: Movers and Shakers: $TKMR $P $BITA $FEYE $SN $CONN $ARO $SUNE $KBH $OAS $CLF $AMBA $SLXP $LOCO $JCP http://t.co/S9oPUZ8…
Stock Signaling
24 Jan 15 18:01:14
Movers and Shakers: $TKMR $P $BITA $FEYE $SN $CONN $ARO $SUNE $KBH $OAS $CLF $AMBA $SLXP $LOCO $JCP http://t.co/S9oPUZ8PN3 #spy #nasdaq #mkt
Stock Rocket
24 Jan 15 17:55:58
Check out http://t.co/5jbX6mNKQv. They have a cool and different way of doing trade alerts. Pretty cool. $MNKD $LNCO $AGEN $SID $ARO $RSH
				
				
By  +Follow August 23, 2013 8:15AM
Share:

Comments

 

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.