Boston, MA 08/20/2014 (wallstreetpr) – A mall-based chain of specialty retailer of casual apparel, Aeropostale Inc (NYSE:ARO) had lifted its outlook for the second quarter. The company had also disclosed its sales number for the second quarter, which was more than the Street analysts’ predictions.
The company had also revealed that it was bringing back Julian Geiger as its Chief Executive Officer to arrest the falling sales and reposition itself to turnaround to profitability.
Outlook
On a GAAP basis, Aeropostale expects to suffer an operating loss of $61 – $64 million or a net loss of 80 – 83 cents a share in the second quarter. This includes charges of $29 – $31 million or 37 – 39 cents a share. However, on an adjusted basis, Aeropostale Inc (NYSE:ARO) predicts a smaller loss than it originally expected. Accordingly, it now expects to incur a loss of $36 – $38 million or a loss of 42 – 45 cents a share compared to an operating loss of $49 – $54 million or a net loss per share of 55 – 61 cents estimated earlier. On average, Wall Street analysts expect the company to suffer a loss of 59 cents a share.
Aeropostale Inc (NYSE:ARO) had also disclosed that its net sales fell 13% to $396.2 million from $454.0 million in the year-ago quarter. Its comparable sales also dipped 13% over the previous year quarter period. Street analysts’ predicted the company to generate revenue of $392.6 million, representing 13.5% downtick.
Re-Entry For Julian Geiger
Aeropostale said that Julian Geiger has come back to Aeropostale Inc (NYSE:ARO) as its Chief Executive Officer with immediate effect. He would also continue to be a member of its Board of Directors. Thomas Johnson has agreed to quit from his position of CEO, as well as, the Director, and he would be available to ensure a smooth transition.
Aeropostale Inc (NYSE:ARO)’s Chairperson, Karin Hirtler-Garvey, said that Julian was an ideal choice for the company because of his earlier stint as the CEO and the passion he brought to the brand image. He was also a leader of the strategic direction during the significant growth period, and Aeropostale Inc (NYSE:ARO) expressed its confidence that he would guide and enhance its sales channels.
