UPDATE: Aeropostale Shares Slide On Weak Q1 Forecast

Shares of

dropped more than 5 percent in after-hours trading, despite the company reporting a surprise adjusted profit for the fourth quarter. The company's weak forecast for the first quarter exerted pressure on the shares. The New York-based company posted a quarterly net loss of $13.5 million, or $0.17 per share, versus a year-ago loss of $70.3 million, or $0.90 per share. Excluding non-recurring items, the company's adjusted earnings came in at $0.01 per share. Its sales slipped 11 percent to $593.8 million from $670.0 million. However, analysts were expecting a loss of $0.03 per share on revenue of 577 million. Aeropostale's same-store sales shrank 9 percent in the quarter, versus a 15 percent decline in the year-ago period. Aeropostale ended the year with $151.8 million in cash and cash equivalents and $138.5 million in long-term debt. Julian R. Geiger, Chief Executive Officer, said, "Achieving our first operating profit in eight quarters is a noteworthy accomplishment. Not only did we register a profit on an adjusted basis, but we also beat our original and revised guidance for the fourth quarter through better than expected margins and expense savings." For the first quarter, Aeropostale projects a net loss of $0.53 to $0.61 per share, versus analysts' estimates of $0.36 per share. For fiscal 2015, the company announced its plans to open around 1 Aeropostale store and remodel, either partially or fully, around 13 Aeropostale stores. Mr. Geiger added, "Our first quarter outlook for 2015 reflects challenging trends as we continue to see softness in consumer demand as a result of weak traffic." Aeropostale shares dipped 5.68 percent to $3.49 in the after-hours trading session.