Aeropostale Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of fashion-forward clothier Aeropostale (NYSE: ARO  ) got tossed in the hamper today, with shares falling by as much as 16%.

So what: The company said that sales in the most recent quarter, which ended in April, dropped 7% and that earnings per share would be around $0.20, below a previous outlook range of $0.35 to $0.38. At least one analyst from Brean Murray Carret & Co. downgraded the stock after the announcement.

Now what: The fashion market is fickle, and it appears that Aeropostale is very out of style right now. Today's news was also mixed from competitor gap Gap (NYSE: GPS  ) , which announced that first-quarter sales were down 3% even though April same-store sales were up 8% from last year. I'm definitely going to sit out this move until we get a clear indication of whether Aeropostale is missing out on seasonal trends or whether the market has passed it by.

Interested in more info on Aeropostale? Add it to your watchlist.

Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.

The Fool owns shares of Aeropostale. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1489549, ~/Articles/ArticleHandler.aspx, 11/23/2014 8:57:06 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement