Aeropostale 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.
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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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