Mar. 14, 2014, 9:20 AM
Mar. 13, 2014, 5:42 PM
Mar. 13, 2014, 4:28 PM
- Aeropostale (ARO) is guiding for FQ1 EPS of -$0.70 to -$0.75, well below a -$0.17 consensus. The forecast doesn't account for expected consulting fees or "potential accelerated store closures."
- The apparel retailer has obtained $150M worth of credit facilities - a 5-year, $100M term loan facility, and a 10-year, $50M term loan facility - from P-E firm Sycamore Partners.
- The deal includes an apparel sourcing arrangement with Sycamore-affiliated MGF Sourcing, and also gives Sycamore preferred stock good for buying 5% Aeropostale's common stock at a price of $7.25. If converted, the shares would raise Sycamore's stake to 12.3%.
- Aeropostale was previously reported to be weighing investment and sale options. The company ended FQ4 with $106.5M in cash/equivalents, and no debt.
- Aeropostale now plans to close 52 stores in FY14 (ends Jan. '15), while opening 7 and remodeling 10. The FY14 capex budget has been lowered to $22M from $35M; FY13 capex was $84M.
- Comparable sales (inc. e-commerce) fell 15% Y/Y in FQ4, the same as FQ3. Gross margin fell 680 bps Y/Y to 13%.
- FQ4 results, PR
Mar. 13, 2014, 4:06 PM
Mar. 13, 2014, 12:10 AM
Mar. 12, 2014, 5:35 PM
Mar. 12, 2014, 1:24 PM
- Apparel stocks are getting roughed up a bit after Express is the latest retailer to come in with a profit warning for Q1.
- The winter storms and holiday promotions that plagued December and January sales totals set the tone for the sector early in the quarter, but concerns are deepening that the promotional atmosphere will be tough to shake off as traffic trends stay weak into March.
- Notable decliners: Lululemon (LULU) -3.7%, Aeropostale (ARO) -2.3%, American Eagle Outfitters (AEO) -2.9%, Gap (GPS) -1.9%.
Mar. 11, 2014, 9:07 AM
- Weak reports from Urban Outfitters (URBN) and American Eagle Outfitters (AEO) could cast a pall over the entire teen apparel sector.
- Both retailers say they are very cautious on Q1 results after seeing weather clip traffic and the holiday promotional activity linger on.
- On watch: ARO, PSUN, PLCE, ANF, CHS, BKE, ZUMZ, EXPR.
Mar. 10, 2014, 9:41 AM
Mar. 6, 2014, 9:42 AM
- Teen-focused retail stocks are having a tough time getting out of the starting gate after a wave of sales and profit reads came in sluggish.
- There are more concerns on the large retail footprint of the group with margin gains being driven higher on the e-commerce side of the business.
- Decliners: Aeropostale (ARO) -1.5%, Pacific Sunwear (PSUN) -1.7%, Children's Place (PLCE) -10.2%, American Eagle Outfitters (AEO) -1.7%, Abercrombie & Fitch (ANF) -0.9%.
Mar. 5, 2014, 9:06 AM
- A recent poll by the Wall Street Journal and NBC indicates 63% of American support raising the minimum wage.
- Though the Republicans are expected to challenge anything brought to the floor of the House, there's a growing consensus in DC that some minimum wage legislation will eventually pass.
- Democrats argue that the current minimum wage level of $7.25 per hour is low by historical standards when adjusted for inflation.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, AEO, ANF, ARO, BBBY, BJ, CHS, COST, DG, DLTR, GPS, HD, JCP, JWN, KR, KSS, LOW, LB, NDN, ODP, PIR, PLCE, RSH, SPLS, SWY, TGT, TJX, URBN, WMT
Feb. 26, 2014, 2:44 PM
- Three Senate Democrats have broken away from Majority Leader Harry Reid's $10.10/hour line in the sand on minimum wage legislation.
- Mary Landrieu of Louisiana, Mark Pryor of Arkansas, and Mark Warner of Virginia have all tipped off that they think there could be some room to negotiate over the amount of an increase over the current federal minimum wage of $7.25/hour. The GOP likes the status quo, but is viewed as likely to give some ground in an election year.
- Federal minimum wage legislation could create higher costs in the retail and restaurants sectors as companies adjust to the new higher floor.
- Last week, Gap made a preemptive move to raise its own hourly wage in a development that stirred the pot a little bit.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, AEO, ANF, ARO, BBBY, BJ, CHS, COST, DG, DLTR, GPS, HD, JCP, JWN, KR, KSS, LOW, LB, NDN, ODP, PIR, PLCE, RSH, SPLS, SWY, TGT, TJX, URBN, WMT.
Feb. 26, 2014, 8:15 AM
- Teen apparel retailers are on the mend this week as Aeropostale (ARO) considers a private equity investment and Abercrombie & Fitch (ANF) beats Q4 estimates through furious cost-cutting.
- Other struggling retailers that cater to the mall rats could follow a similar strategy after coming after a disastrous holiday season for store traffic and pricing.
- On watch: Zumiez (ZUMZ), Express (EXPR), Buckle (BKE), American Eagle Outfitters (AEO).
Feb. 25, 2014, 6:52 PM
- Bloomberg reports Aeropostale (ARO) is working with Barclays to explore investment options such as a convertible note sale or a PIPE transaction, and is also "weighing a straight-up sale."
- Reuters reported two weeks ago the struggling apparel retailer is open to a PIPE deal. Activist investor Crescendo Partners has been pressing Aeropostale to look for a buyer.
- ARO +3.6% AH.
Feb. 14, 2014, 8:51 AM| Comment!
Feb. 10, 2014, 2:44 PM
- Aerpostale (ARO -2.2%) might look to P-E firms for help with a capital raise, according to Reuters.
- There is speculation that the retailer might forgo public markets to raise the funds in a private investment transaction.
- What to watch: Activist investors Sycamore Partners and Crescendo Partners are likely to have ideas of their own on ARO's future path.
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