Aeropostale Sales Metric Up But Misses Estimates

NEW YORK (AP) — Teen and children's apparel retailer Aeropostale Inc. said Thursday that sales at stores open at least a year rose 3 percent in October, but analysts expected a higher increase and shares tumbled.

According to Thomson Reuters, analysts forecast an increase of 13.8 percent.

These sales figures are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

Shares of Aeropostale fell $4.43, or 12 percent, to $33.60 in morning trading Thursday, even as the company raised its guidance for the quarter.

Total sales in the four-week period ending Oct. 31 rose 9 percent to $138.8 million.

For the quarter, total sales rose 18 percent to $567.8 million, while sales at stores open at least a year rose 10 percent. Analysts predict total revenue for the quarter of $571.7 million.

The company said it made a "seamless transition" into its holiday merchandise while still managing its back to school clearance inventories. It also said the amount of money it makes off its merchandise "increased significantly" over the previous year, and inventories were well controlled.

Aeropostale raised its guidance for the quarter to a range of 90 cents to 91 cents a share, up from its previous range of 84 cents to 85 cents a share. Analysts expect earnings per share of 87 cents, according to Thomson.