Aeropostale Selling Off On Disappointing Guidance
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.
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.
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