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Post-Earnings Review and Insight - Aeropostale

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LONDON, September 2, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review and insight on Aeropostale Inc. (NYSE: ARO). The company featured in the headlines on Thursday, August 21, 2014 after reporting results for the second quarter ended August 02, 2014. During Q2 FY14, Aeropostale Inc.'s net sales, and its comparable sales (including the e-commerce channel), both fell by 13% Y-o-Y. Our free coverage report can be accessed at:


Earnings Overview  

Aeropostale Inc.'s GAAP net loss for Q2 FY14 widened to $63.82 million, or $0.81 per diluted share, from a net loss of $33.73 million, or $0.43 per diluted share, in the year ago period. Analysts from Bloomberg were anticipating GAAP net loss of $45.01 million, or $0.61 per diluted share during the reported quarter.  The company registered an adjusted net loss of $36.0 million, or $0.46 per diluted share in Q2 FY14, as against an adjusted net loss of $26.9 million, or $0.34 per diluted share in Q2 FY13. The company's net sales in Q2 FY14 declined to $396.16 million, from $454.03 million in the preceding year quarter. During Q2 FY14, Aeropostale Inc.'s comparable sales, including the e-commerce channel declined 13% Y-o-Y, following a decrease of 15% Y-o-Y in the previous year quarter. Further, the company's gross profit for the reported quarter fell to $62.55 million, from $81.17 million in the prior year period. As on August 02, 2014, the company had cash and cash equivalents of $152.27 million and $133.59 million in long-term debt. Aeropostale Inc. closed the second quarter with merchandise and inventory of $213.02 million, compared with $249.62 million in the comparable quarter last year. The free research on ARO can be downloaded as in PDF format at:


Julian R. Geiger, CEO of Aeropostale Inc., stated in the press release that the company is moving in the right direction, and that he feels encouraged as Aeropostale Inc. was able to achieve higher average unit retails and margins. In addition, he said that the company managed better expense control during the second quarter, all of which enabled the company to surpass its guidance.

For Q3 FY14, the company is expecting operating losses to be in the range of $33.0 to $37.0 million, which translates to net loss in the range of $0.44 to $0.48 per diluted share.  The effective tax rate for the third quarter is projected to be approximately 4.0%. The company's outlook for the third quarter of FY14 does not include the impact of any identifiable store impairments or accelerated store closure costs, consulting fees, and severance costs related to the company's previous CEO. The New York-based speciality retailer opened four Aeropostale stores and one Aeropostale and P.S. from Aeropostale combination store; and closed 11 Aeropostale stores and three P.S. from Aeropostale stores during the second quarter of 2014.  Sign up and read the free analyst's notes on ARO at:


Stock Performance 

On Friday, August 22, 2014, a day after the earnings release, the falling sales and widening losses took Aeropostale Inc.'s stock down by 9.97%, to end the session at $3.52. The stock has recovered since then, finishing at $4.19 on the last close, Friday, August 29, 2014, gaining 1.21% over its previous day's close. The stock vacillated between $4.09 and $4.27 during the trading session. A total of 4.28 million shares were traded, which was above its three months average volume of 3.47 million shares. Over the previous three trading sessions and over the last one month, the company's shares have gained 9.69% and 30.94%, respectively. However, the stock has declined 53.91% from the beginning of 2014. While Aeropostale Inc.'s shares are trading above their 50-day moving average, the stock's 50-day moving average of $3.42 is below its 200-day moving average of $5.71. Further, the stock has a Relative Strength Index (RSI) of 66.85. Visit Investor-Edge and access the latest research on ARO at:


Sneak Peek to Corporate Insider Trading  

In the last one month, there were eighteen insider purchases made by two insiders for a total of 85,000 shares of Aeropostale Inc. worth $310,902.70 million at an average price of $3.79 per share. On August 25, 2014, Karin Hirtler Garvey, Aeropostale Inc.'s Chairman, bought a total of 55,000 shares of Aeropostale Inc. worth $196,020.70, at an average price of $3.56 per share. In addition, on August 26, 2014, Kenneth B. Gilman, an independent director of the company, bought a total of 30,000 shares, worth $114,882 at an average price of $3.84 per share. Complimentary in-depth research on ARO is available at:


About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.




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Content is researched, written and reviewed on a best-effort basis. This document, article or report is prepared and authored by Investor-Edge, represented by Rohit Tuli, CFA. An outsourced research services provider has only reviewed the information provided by Investor-Edge in this article or report according to the procedures outlined by Investor-Edge. Investor-Edge is not entitled to veto or interfere in the application of such procedures by the outsourced provider to the articles, documents or reports, as the case may be.


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