UPDATE: Aeropostale Posts 98% Drop In FQ2 Profit, Issues Downbeat Q3 Forecast

Aeropostale ARO reported a 98% drop in its fiscal second-quarter earnings and issued a weak forecast for the current quarter. Aeropostale expects Q3 earnings of $0.25 to $0.30 per share, versus analysts' estimates of $0.38 per share. Aeropostale's quarterly profit fell to $71,000, or breakeven per share, from $2.9 million, or $0.04 per share, in the year-ago period. Its gross margin rose to 25.3% from 24.4%, while overhead expenses surged 12%. Aeropostale's net sales rose around 4% to $485.3 million in the quarter. Aeropostale shares fell 7.91% to $12.58 in after-hours trading.