Join        Login             Stock Quote

Aeropostale (ARO) Cuts 4Q Profit View On Lower Sales, Margins; Shares Off

 January 10, 2013 09:14 AM

(By Balaseshan) Teen casual apparel retailer Aeropostale Inc. (NYSE: ARO) cut its earnings guidance for the fourth quarter due to lower than expected sales and margins, and its shares tumbled 9.12% in premarket.

Net sales for the nine-week period ended December 29, 2012 fell 6% to $645.0 million from $682.6 million in the previous year period. Comparable sales, including the e-commerce channel, decreased 8% compared to a 9% drop last year.

Comparable store sales, excluding the e-commerce channel, for the nine-week period ended December 29, 2012 declined 9%, compared to a 10% fall last year.

[Related -American Eagle Outfitters (AEO), The Gap Inc. (GPS), Aeropostale Inc (ARO): Mall Musings]

The company lowered its fourth quarter earnings forecast to range of about $0.20 to $0.24 per share from previous estimate of about $0.36 to $0.41 per share, while Street predicts $0.40 per share.

"Following a strong Black Friday weekend, sales and traffic trends deteriorated significantly in December. From a merchandise perspective our core basics businesses, particularly graphics and fleece, remained challenged," said Thomas Johnson, Chief Executive of Aeropostale.

For the third quarter of 2012, the company posted earnings of $24.9 million or $0.31 per share on net sales of $605.9 million. Comparable sales including the e-commerce channel decreased 1%, while sales excluding the e-commerce channel declined 2%.

ARO closed Wednesday's regular session at $13.37. The stock has been trading between $11.76 and $23.05 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageOld Bank's New Breakout has Big Rally Potential

One of my favorite things to see in a long candidate is a pattern of beating Wall Street's earnings read on...

article imageIs The Stock Market's 5-Year Return A Useful Proxy For Valuation?

Tobin’s Q, a market-valuation metric, is back in the news, in part thanks to a widely read Bloomberg read on...

article image4 Dogs To Sell Immediately

Despite the chorus of analysts and investors calling for the long-awaited correction, the market is showing read on...

article imageThe Fed's Magical Mystery Tour

What's going on at the Fed? Notorious dove, Charles Evans of the Chicago Fed, gave a speech in read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.