The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Aeropostale met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted, and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Aeropostale booked revenue of $808.4 million. The 20 analysts polled by S&P Capital IQ predicted revenue of $805.9 million on the same basis. GAAP reported sales were 3.7% lower than the prior-year quarter's $839.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.44. The 24 earnings estimates compiled by S&P Capital IQ averaged $0.37 per share on the same basis. GAAP EPS of $0.32 for Q4 were 66% lower than the prior-year quarter's $0.94 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.1%, 2,670 basis points worse than the prior-year quarter. Operating margin was 6.9%, 1,030 basis points worse than the prior-year quarter. Net margin was 3.2%, 680 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $465.7 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $2.40 billion. The average EPS estimate is $1.18.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,031 members rating the stock outperform and 63 members rating it underperform. Among 328 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 318 give Aeropostale a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aeropostale is hold, with an average price target of $18.05.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Aeropostale. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.