Shares of apparel retailer Aeropostale (ARO) plunged more than 18% in Friday premarket trading after the company posted disappointing fiscal first-quarter results and warned of a wider-than-forecast second-quarter loss.
Aeropostale announced a loss of $76.8 million for the first quarter, compared to a loss of $12.2 million in the year-ago period. Adjusted EPS showed a loss of 52 cents. Quarterly sales fell to $395.9 million, down 12% year-over-year, and falling short of the $410 million that analysts had forecast, the Wall Street Journal noted.
Looking forward, Aeropostale projected a current quarter loss of between 55 cents and 61 cents per ARO share, worse than the 50-cent-per-share loss that Wall Street had anticipated.
Aeropostale CEO Thomas P. Johnson cited tough market conditions during the first quarter. “As other retailers experienced, the macroeconomic environment was challenging during the first quarter with aggressive promotions, lower mall traffic, and unseasonable weather,” he said. Johnson noted that the company is concentrating on “strategies to reposition the Aeropostale brand.”
On Thursday, ARO stock closed at $4.44 per share.
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