Boston, MA 08/22/2014 (wallstreetpr) – Aeropostale Inc (NYSE:ARO), one of the apparel companies that have lost most of their former glory, looks to online sales as things refuse to work the traditional way. The Internet was supposed to help retailers such as Aeropostale to reach for customers to perhaps increase store traffic, but the opposite has been achieved. As people change their shopping habits, mainly by choosing to order items online and have the same delivered to their residence without driving to a retail stores, it has been business unusual for Aeropostale and its peers.
In order to attempt a serious turnaround, the company is now keen on going online, at least so that it may meet its customers there. In going online, the company hopes to achieve greater cost-saving in addition to boosting sales. Its latest quarter results suggest that its move online should be as fast as possible, at least to plug the financial leaks.
Revenue decline
The company recently reported a loss of $0.81 a share, which came to a loss of $0.46 a share on an adjusted basis. While that was better than the estimated loss of $0.48 a share for the quarter, revenue fell short of the expectation by a significant margin. The company reported revenue of $396.2 million, which compared unfavorably with the expected revenue of $405.8 million for the quarter.
Former CEO rehired
In addition to attempting online shift to tap more revenue, Aeropostale Inc (NYSE:ARO) also announced plans to close more mall locations in efforts to curb costs. Furthermore, the company announced recalling of its former CEO to help steer the company through the turnaround phase. Julian Geiger will return to the company having been there between 1998 and 2010 in the capacity of chairman and CEO. He will replace Thomas Johnson, who left the company’s board of directors and also dropped his CEO position.
Aeropostale Inc (NYSE:ARO) expects to register a loss of $0.44-$0.48 a share in the current quarter, which is bigger than a loss of $0.33 a share that most analysts expect for the quarter.
