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Aeropostale, Inc. (ARO)

  • Apr. 8, 2014, 5:12 PM
    • Piper has cut Aeropostale (ARO) to Underweight.
    • The struggling apparel retailer is near its 52-week low of $4.73.
    | 1 Comment
  • Apr. 4, 2014, 10:18 AM
    • Aeropostale (ARO +1.1%) says it will delay filing its SEC Form 10-K.
    • The company needs extra time to gather documents pertaining to internal controls at GoJane.
    • SEC Form 12b-25
    | Comment!
  • Mar. 26, 2014, 1:08 PM
    • Levi Strauss says it will cut 800 jobs in a cost-cutting move.
    • The private company says it will save as much as $200M in annual costs after the job reductions are enacted.
    • The development is interesting in light of the stance of many apparel retailers (AEO, ARO, ANF, LB, GPS, ZUMZ, EXPR, GES) that their recent shortfall in sales and traffic is a temporary weather-related issue. A 20% cut in its work force by Levi Strauss is no ray of sunshine for the outlook on the industry.
    | Comment!
  • Mar. 19, 2014, 9:22 AM
    • Retail analysts are still buzzing over the 0.3% drop in apparel and clothing prices reported by the Department of Labor yesterday.
    • The drop works out to 3.6% on an annualized basis and came during a month when prices are supposed to snap back from their holiday promotional fervor.
    • Related stocks: ARO, ANF, AEO, ZUMZ, PSUN,  BKE, EXPR, WTSL, TLYS, CACH, GPS, LULU, LB, ANN.
    | Comment!
  • Mar. 18, 2014, 12:57 PM
    • Shares of Aeropostale (ARO +3.9%) are in recovery mode on heavy volume after tumbling last week to multi-year lows.
    • The company is stuck in a rut of sales falling off faster than expenses.
    • Though most retail analysts see the ARO sell-off as a bit overdone, the company's sales and profit outlook hasn't changed yet.
  • Mar. 14, 2014, 1:26 PM
    • The Center for Labor Market Studies at Northeastern University is out with a shocking report on the unemployment rate of teenagers.
    • A study by the group found that the percentage of teens that were employed dropped 19 percentage points to 26% during the period from 2000 to 2011. Some analysts think the rate is actually even lower today.
    • One group that might not be shocked by the apparent cash-strapped nature of teenagers is apparel retailers. Firms up and down the sector have been rocked by weak traffic trends that are tied to more than winter weather.
    • Related stocks: ARO, ANF, AEO, ZUMZ, PSUN, BKE, EXPR, WTSL, TLYS, CACH.
    • Full report: The Plummeting Labor Market Fortunes of Teens and Young Adults. (.pdf)
  • Mar. 14, 2014, 12:48 PM
    | 1 Comment
  • Mar. 14, 2014, 11:54 AM
    • Cowen Research is out with a warning on Aeropostale (ARO -14.5%).
    • The investment firm notes a new $150M senior secured credit deal now stands in front of equity shareholders in the reworked capital structure.
    • Shares are diving today with the retailer's "ballooned" accounts payable figure creating as many worries as its soft sales patterns.
    | 1 Comment
  • 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
    | 1 Comment
  • Mar. 13, 2014, 4:06 PM
    • Aeropostale (ARO): Q4 EPS of -$0.35 misses by $0.04.
    • Revenue of $670M (-16.0% Y/Y) misses by $14.96M.
    • Press Release
    | 1 Comment
  • 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%.
    | Comment!
  • 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.
    | Comment!
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Company Description
Aeropostale Inc is amall-based,specialty retailer of casual apparel and accessories targeting 14 to 17 year-old young women and men through its Aropostale stores and website and 4 to 12 year-olds through its P.S. from Aropostale stores and website.
Sector: Services
Industry: Apparel Stores
Country: United States