Wunderlich Tells Investors To Avoid Aeropostale Inc.

Aeropostale Inc.'s

9 percent drop in same-store sales for November and December was better than expected but an analyst said the company lacks a coherent and credible plan to become profitable. "We would avoid the name," Wunderlich's Eric Beder said in a note Friday. The current period is likely to be the eighteenth consecutive quarter of declining or flat same-store sales for the New York-based teen apparel retailer. Stability in the teen sector is "frankly nowhere in sight," Beder said, and while Aeropostale's holiday sales were "less worse than expected," Beder said they represent "dreadful results." In August, Aeropostale named Julian Geiger chief executive to replace Thomas Johnson. Geiger, 68, headed Aeropostale in happier years from 1996 to 2010, and returned to the apparel retailer from leading Crumbs Bakeshop, which filed for Chapter 11 bankruptcy in July. Aeropostale closed Friday down more than 5 percent at $2.65.