Back to top

Analyst Blog

In furtherance of the global consolidation of its brand, Aeropostale Inc. (ARO - Snapshot Report) announced its plans to expand in Mexico. Starting this summer, the company through a licensing agreement with Distribuidora Liverpool, S.A. de C.V., will open Aeropostale shops within Liverpool department stores across Mexico.

Alongside, Aeropostale will be opening its own standalone stores in Mexico, of which the first store is slated to open in summer 2013.

This strategic move reflects the company’s efforts to strengthen its position in regions where it could generate strong sales. Moreover, the expansion of its store base in Mexico will help widen its growth prospects and facilitate it to hedge against economic cycles.

Aeropostale has been grappling with lower sales and profitability as macroeconomic headwinds, higher promotional costs and increased inventory levels are taking a toll on its financials.   

The company earlier stated that macroeconomic headwinds will adversely affect its margins and in turn earnings. Consequently, it expects to report loss per share in the range of 15 cents to 20 cents in the second quarter of fiscal 2013.

This Zacks Rank #3 (Hold) teen clothing store chain currently operates through 898 Aeropostale stores and 132 P.S. from Aeropostale stores. Moreover, the company operates 78 Aeropostale stores in Canada.

Other Stocks to Consider

Until any further upward revision in the Zacks Rank on Aeropostale, other apparel retailers worth considering include The Gap, Inc. (GPS - Analyst Report), Stein Mart Inc. and Pacific Sunwear of California Inc. (PSUN - Snapshot Report), all carrying a favorable Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%