Aeropostale Sinking on Lowered Guidance
After reporting earnings last night that fell far short of the consensus estimate, Aeropostale Inc. (NYSE: ARO) shares are down this morning after the company lowered its fourth-quarter outlook significantly below expectations as well. The company has struggled with sales and profits for a while now, and shares were pummeled in early August when the company lowered guidance.
Aeropostale has missed some trends that are crucial to its teen customers and has tried to jump back into the game in its women's apparel as well. The company's CEO blames promotional pricing pressure from competitors like Abercrombie & Fitch Co. (NYSE: ANF) and other mall-based stores.
That competition will only get fiercer as the holiday shopping season heads toward the end of December, and if Aeropostale is worried now, things could get a lot worse before they get better.
Shares are down about 6% this morning, at $13.28 in a 52-week range of $11.76 to $23.05.
Filed under: 24/7 Wall St. Wire, Apparel, Retail Tagged: ANF, ARO