Aeropostale (ARO) Shares Tumble as Q2 Results Mixed, Q3 Guidance Well Below the Street
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Price: $16.19 +0.94%
Revenue Growth %: -1.3%
Financial Fact:
Weighted average basic shares: 79.83M
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Revenue Growth %: -1.3%
Financial Fact:
Weighted average basic shares: 79.83M
Today's EPS Names:
LBIX, ESEA, ISS, More
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Aeropostale, Inc. (NYSE: ARO) Thursday reported results for the second quarter of fiscal 2011, and provided guidance for the third quarter of fiscal 2011.
Net income for the quarter was $2.941 million, down substantially from $43.6 million in the second quarter of 2010. Diluted net earnings per share for the second quarter were $0.04, including a non-recurring pre-tax benefit of $0.06. Adjusted EPS for the quarter was a loss of $0.02, $0.01 above the analyst consensus.
Net sales for the quarter decreased 5 percent year-over-year to $468.2 million, well below the consensus of $490.86 million. E-commerce business sales for the second quarter rose 20 percent from $20.9 million last year to $25.1 million.
Same-store sales for the second quarter decreased 14 percent, compared to a same-store sales increase of 4 percent last year.
Total cost of sales at $354.2 million accounted for 75.6 percent of total sales, an increase from last year. Costs only accounted for 62.7 percent of total sales during the second quarter of 2010.
The company ended the quarter with cash and cash equivalents of $73.1 million, and no debt.
Aeropostale opened seven new stores and ten P.S. from Aeropostale stores. The company also closed 2 stores.
Guidance for the third quarter calls for earnings in the range of $0.09 to $0.15 per diluted share, drastically below the consensus of $0.30.
"Our outlook for the third quarter reflects challenging sales and margin trends, as well as an uncertain macroeconomic environment. While we are very disappointed with our current performance, we are working diligently to integrate the right balance of fashion into our assortment. Additionally, we will find new ways to connect with our customer, and amplify our fashion message. I am very confident that the strategies we have in place and the tenacity of our organization will position us for future growth and success,” said Thomas Johnson, Chief Executive Officer of Aeropostale.
Shares of Aeropostale are down more than 9 percent in Thursday's after-hours session. The stock last traded at $5.50.
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Net income for the quarter was $2.941 million, down substantially from $43.6 million in the second quarter of 2010. Diluted net earnings per share for the second quarter were $0.04, including a non-recurring pre-tax benefit of $0.06. Adjusted EPS for the quarter was a loss of $0.02, $0.01 above the analyst consensus.
Net sales for the quarter decreased 5 percent year-over-year to $468.2 million, well below the consensus of $490.86 million. E-commerce business sales for the second quarter rose 20 percent from $20.9 million last year to $25.1 million.
Same-store sales for the second quarter decreased 14 percent, compared to a same-store sales increase of 4 percent last year.
Total cost of sales at $354.2 million accounted for 75.6 percent of total sales, an increase from last year. Costs only accounted for 62.7 percent of total sales during the second quarter of 2010.
The company ended the quarter with cash and cash equivalents of $73.1 million, and no debt.
Aeropostale opened seven new stores and ten P.S. from Aeropostale stores. The company also closed 2 stores.
Guidance for the third quarter calls for earnings in the range of $0.09 to $0.15 per diluted share, drastically below the consensus of $0.30.
"Our outlook for the third quarter reflects challenging sales and margin trends, as well as an uncertain macroeconomic environment. While we are very disappointed with our current performance, we are working diligently to integrate the right balance of fashion into our assortment. Additionally, we will find new ways to connect with our customer, and amplify our fashion message. I am very confident that the strategies we have in place and the tenacity of our organization will position us for future growth and success,” said Thomas Johnson, Chief Executive Officer of Aeropostale.
Shares of Aeropostale are down more than 9 percent in Thursday's after-hours session. The stock last traded at $5.50.
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