Aeropostale Falls After Q3 Report
Aeropostale (NYSE: ARO) is trading down more than three percent in after hours trading after the retailer announced its third quarter earnings results.
The company reported a Q3 EPS of $(0.29) versus the Street estimate of $(0.24).
Earnings per share were down 194 percent from the year-ago period.
Revenue arrived at $514.6 million, a few million short of the Street estimate of $520.04 million. Sales were down 15 percent year-over-year.
"Our comparable sales decline was in-line with our year-to-date trend, and we were more promotional than anticipated in order to strengthen our inventory position going into the fourth quarter," Thomas P. Johnson, Chief Executive Officer of Aeropostale, said in a company release.
"We took an important step forward in the transformation of our brand with newness across our full merchandise assortment in the third quarter. However, we were disappointed in our overall performance as customer adoption is occurring more slowly than we would like against the backdrop of a challenging teen retail environment."
Aeropostale has watched its stock plummet more than 22 percent this year. The teen apparel company has fallen more than 33 percent over the last six months alone.
There have been signs of growth in recent months, with Aeropostale rising more than 22 percent over the last three months. While this growth has given some investors hope, it has not been enough to erase the firm's massive declines.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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