Sterne Agee Lowers Estimates on Aeropostale

Sterne Agee is out with its report today on Aeropostale NYSE: ARO), lowering estimates on ARO. In its report, Sterne Agee writes, "We are tempering our view of ARO's projected gross margin recovery in FY12 and FY13 to 26.1% and 27.9% -- down from previous estimates of 29.3% and 32.7%, respectively. In FY10, gross margins were 36.9%. This results in lowered earnings to $0.94 and $1.35 for FY12 and FY13, respectively, down from $1.54 and $2.33 previously. Note FC expectations for next year are in a wide range of $0.47-$1.87 with the consensus at $1.03. We maintain our Neutral rating on Aeropostale." At the time of posting, shares of ARO were trading at $10.76, down 0.46% from Friday's close.