Earnings Preview: Aeropostale

Aeropostale (ARO) is expected to report Q4 earnings after the market close on Thursday, March 12 with a conference call scheduled for 4:15 pm ET.

Guidance

Analysts are looking for a profit of $1.00 on revenue of $681.69M. The consensus range is $1.00-$1.01 for EPS, and revenue of $616M-$690.1M, according to First Call. After reporting its January same-store sales increased a better-than-expected 11%, the retailer raised its Q4 EPS view to $1.00 from the prior 90c-92c view. Aeropostale, which announced plans to close its Jimmy'Z concept, also reported its February SSS increased 11% on net sales of $109.9M. Aeropostale noted that it continued to experience positive reads on spring merchandise and said its inventories remain well-controlled and on plan.

Analyst Views

Zacks Investment notes that Aeropostale has topped expectations several times over the past two years and continued to generate SSS growth in February, so "there is a good possibility of a bullish earnings report." Brean Murray also believes the company will announce solid results, and provide compelling evidence that its discount-driven business is one of the few winners in the current environment. The firm believes Aeropostale management will provide further guidance on its new kids concept.