Market Overview

Aeropostale Selling Off On Disappointing Guidance

Related ARO
Should Investors Worry Over An Earlier And Longer Black Friday?
Watch Specialty Apparel Names Following American Eagle Preliminary Results, Guidance
Are Teens 'Totally' Over Traditional Retailers? (Fox Business)

Aeropostale (NYSE: ARO) traded sharply lower after reporting low third quarter guidance.

Revenue was reported just above the analyst consensus at $396.2 million versus $395.4 million. The weak top line figure was driven by the closure of 11 stores while just four were opened. In addition, same-store sales dropped 13 percent year over year.

Aeropostale lost just $0.46 per share ,while Wall Street expected $0.58 per share. Nonetheless, the company lost 35.2 percent more money than in the second quarter of 2013. Cost of goods sold jumped from 82.1 percent to 84.2 percent.

Related Link: 4 Companies The Unsuccessful Family Dollar Suitor Might Buy

Looking forward, Aeropostale expects to lose between $0.44 and $0.48 per share. The midpoint is 39.3 percent lower than the $0.33 analyst expectation.

New CEO Julian Geiger says he is “encouraged” by strong margins and expense control.

Shares of Aeropostale were last trading at $3.63, down 7.1 percent after hours.

Posted-In: Julian GeigerEarnings News Guidance Management After-Hours Center

 

Related Articles (ARO)

Around the Web, We're Loving...

Get Benzinga's Newsletters