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What: Shares of teen clothing retailer Aeropostale
So what: Margins and management tell the story here of why Aeropostale is down. Same-store sales figures fell by 1% in November, and the company came up short of Wall Street's expectations by reporting a $0.63-per-share quarter profit when the Street had been looking for $0.66. On top of this, fourth-quarter guidance was on the low end of estimates and co-CEO Mindy Meads, who is the main reason inventory levels have been so well-controlled, announced she is leaving the company to pursue other interests.
Now what: Although it's not prudent to let one month determine the long-term outlook for Aeropostale, I have to say its penchant for discounting to drive sales is definitely beginning to eat into its margins. Competitors Abercrombie & Fitch
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