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.

Paul Ausick


Filed under: 24/7 Wall St. Wire, Apparel, Retail Tagged: ANF, ARO
Read Full Story

Markets

NASDAQ 6,790.71 7.92 0.12%
S&P 500 2,582.14 3.29 0.13%
DJIA 23,430.33 72.09 0.31%
NIKKEI 225 22,261.76 -135.04 -0.60%
HANG SENG 29,260.31 61.27 0.21%
DAX 13,058.66 64.93 0.50%
USD (per EUR) 1.17 0.00 0.05%
USD (per CHF) 0.99 0.00 0.37%
JPY (per USD) 112.53 0.50 0.44%
GBP (per USD) 1.32 0.00 0.30%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.