Aeropostale Expects Larger Q2 Losses

Lower-than-expected sales and margins have caused apparel retailer Aeropostale (NASDAQOTH: AROPQ  ) to expect a larger loss than its earlier second-quarter guidance, the company announced today.

Aeropostale now expects its second-quarter loss to be between $0.42 and $0.44 per share. Its original second-quarter guidance had its losses in the $0.15 to $0.20 per share range.

The greater losses came about, the company said, partly because of additional charges totaling approximately $0.19 per share, which included a lower-than-expected tax benefit, store asset impairment charges, and retirement features of its stock-based compensation plan.

There was also a decrease in net sales by 6% to $454 million, and comparable sales decreased by 15% for the quarter, compared to the same period last year.

CEO Thomas P. Johnson said in the company's statement, "During the second quarter, we continued to experience the challenging trends we faced in the first quarter. Our performance was driven by an increase in promotional activity as we navigated through balancing our assortment, weak traffic trends and a challenging retail environment, particularly during the July selling period."  The teen-oriented-clothing retailer had to mark down more clothing.

Aeropostale expects to announce its second-quarter earnings on Thursday, Aug. 22.

Back-to-school is the second-biggest shopping period of the year after the holiday season and so far it is off to a rocky start for teen retailers. On Tuesday, Aeropostale rival American Eagle Outfitters slashed its second-quarter earnings outlook because of weak sales during the April-to-June quarter.

-- Material from The Associated Press was used in this report.


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

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.

Compare Brokers

Fool Disclosure

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: 2586463, ~/Articles/ArticleHandler.aspx, 10/1/2016 6:55:10 PM

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...

Today's Market

updated 21 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 3:06 PM
AROPQ $0.04 Down -0.01 -14.37%
Aeropostale CAPS Rating: *
AEO $17.86 Up +0.14 +0.79%
American Eagle Out… CAPS Rating: ****