Earnings Preview: Aeropostale

| About: Aeropostale, Inc. (ARO)
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Aeropostale (NYSE:ARO) is expected to report Q2 earnings after the market close on Thursday, August 16 with a conference call scheduled for 4:15 pm ET.


Analysts are looking for EPS of 0c on revenue of $490.89M. The consensus range is 0c-1c for EPS, and $461.2M-$512M for revenue, according to First Call. After reporting in-line Q1 EPS and better-than-expected revenue, the retailer forecast Q2 EPS 3c-5c. On August 2, the company cut its Q2 EPS view to 0c and said Q2 net sales increased 4% to $485.3M. Aeropostale also reported that Q2 same-store sales were essentially flat including the e-commerce channel compared to a 12% decrease last year; excluding the e-commerce channel, SSS decreased 1% vs. a 14% decrease in the year ago period.

Analyst Views

Piper Jaffray expects the company's management to be positive on current business trends on the Q2 conference call, resulting in a rally in shares. BofA/Merrill cut its price target for shares to $16 from $19 citing soft trends at the end of Q2 amid competitive pressures. During the quarter, shares were initiated with a Neutral rating at Lazard Capital, downgraded to Underweight from Equal Weight at Morgan Stanley and downgraded to Neutral from Buy at SunTrust.