Earnings Preview: Aeropostale

Nov.29.11 | About: Aeropostale, Inc. (ARO)

Aeropostale (NYSE:ARO) is expected to report Q3 earnings after the market close on Wednesday, November 30 with a conference call scheduled for 4:15 pm ET.

Guidance

Analysts are looking for EPS of 28c on revenue of $587.78M. The consensus range is 27c-29c for EPS, and $552.2M-$609M for revenue, according to First Call. On November 3, Aeropostale reported Q3 revenue $596.5M and said same-store sales declined 9% for the quarter. Citing better than expected gross margins, the retailer also raised its Q3 EPS outlook to 27c-28c from 9c-15c.

Analyst Views

During the quarter, Wells Fargo increased its valuation range for the retailer to $14-$15 after providing higher than expected EPS guidance, but maintained its Under-perform rating. Shares were also upgraded at Goldman, KeyBanc and Caris. Also, the company announced its expansion into Turkey through a licensing agreement with FiBA Group, and Greenlight Capital liquidated its stake in the retailer. Analysts and investors will listen for comments from the company on commodity costs, Black Friday, as well as the upcoming holiday season.