Aeropostale Reports Q4 Earnings; Shares Plummet Amid Lackluster Quarter
Aeropostale (NYSE: ARO) reported its fourth quarter and fiscal 2013 results on Thursday, March 13, 2014.
Shares of the mall-based specialty retailer are down $0.90 or 12 percent in after-hours trading to $6.40, after revenue decreased 16 percent to $670 million from $797.7 million the same time a year ago.
Shareholders were also upset regarding e-commerce sales as they fell 15 percent. Sales have steadily been decreasing from the e-commerce channel as they decreased eight percent for the corresponding period of the prior year.
The company also reported a net loss of 70.3 million for the fourth quarter of 2013, or $0.90 per diluted share.
The company opened five new Aeropostale locations and three P.S. Aeropostale stores, and the company closed 32 stores.
Chief Executive Officer, Thomas P. Johnson, commented, “The results we generated in 2013 are not acceptable nor are they a reflection of the progress we believe we have made in transforming our brand. Having evaluated what we set out to do in 2013 and what we learned, we believe our strategy surrounding product, brand projection, process and growth is even more crucial to winning in today's challenging retail landscape."
The Company also announced today that it has signed a commitment letter with Sycamore Partners and its affiliates for a strategic partnership and $150 million in senior secured credit facilities.
For the first quarter of 2014 the mall-based retailer is expecting an operating loss of $64 to $68 million.
Johnson continued, “We are moving aggressively and taking swift actions across all areas of our business that we expect will improve our operational and financial performance over time. The commitment letter for a strategic partnership and financing that we announced today more strongly positions the Company and provides us with the flexibility to continue executing on our strategies designed to reposition the Aeropostale brand."
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