Aeropostale (ARO) Numbers Slashed at Jefferies Post Q3; a Work in Progress

Jefferies maintained a Hold rating on Aeropostale, Inc. (NYSE: ARO), and cut the price target to $0.60 (from $1.25), following the company's 3Q earnings report. EPS came in ahead of consensus. Despite the EPS beat, comps missed substantially (down 10% versus guidance of down LSD), with a major drop-off in trend in September into October. Weakness extended into 4Q, with comps running down LDD into Black Friday. However, Black Friday weekend showed improvement, with comps down MSD. The 4Q outlook assumes negative LSD to MSD comps.

Analyst Randal Konik commented, "While 3Q exceeded consensus, the top-line missed significantly, as new initiatives, while gradually gaining traction, have been slower to take hold than initially expected. Despite some initial signs of progress, visibility remains limited here, leading us to maintain our Hold rating."

For an analyst ratings summary and ratings history on Aeropostale, Inc. click here. For more ratings news on Aeropostale, Inc. click here.

Shares of Aeropostale, Inc. closed at $0.59 yesterday.

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