Back to top

Analyst Blog

Zacks Equity Research

Aeropostale's Dismal Holiday Sales


 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

The holiday season was disappointing for Aeropostale Inc. (ARO - Snapshot Report), compelling management to lower its fourth quarter 2012 earnings guidance. Total net sales came in at $645 million for the nine-week period ended December 29, 2012, down 6% from $682.6 million reported in the prior-year period.

The specialty retailer of active and casual apparel, footwear and accessories for the youth witnessed an 8% decline in comparable-store sales (including the e-Commerce channel) for the nine-week period. Aeropostale had registered a decline of 9% in comparable-store sales for the year-ago period.

Excluding the contribution of the e-Commerce channel, comparable-store sales dipped 9% compared with a 10% fall witnessed in the prior year.

The company stated that the decrease in sales on account of lower traffic dented its December sales. Moreover, the company’s merchandising strategy backfired as its core offering, including graphics and fleece, was not well received by the consumers.  

Weak holiday sales prompted management to lower the earnings guidance to a range of 20 cents to 24 cents a share for the fourth quarter of fiscal 2012. The company had earlier forecasted earnings in the band of 36 cents to 41 cents. Consequently, we anticipate a decline in the Zacks Consensus Estimate for the fourth quarter, which currently stands at 40 cents a share.

The company currently operates 917 Aeropostale stores across 50 states and Puerto Rico, and 78 Aeropostale stores in Canada. Aeropostale operates 100 P.S. from Aeropostale stores in 20 states.

Currently, Aeropostale, which competes with American Eagle Outfitters Inc. (AEO - Analyst Report), holds a Zacks Rank #5, (Strong Sell).

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

Learn more

Start for as little as $4.50 per trade.

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
LAKE SHORE G LSG 0.77 +6.05%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%
BNC BANCORP BNCN 17.33 +1.58%