This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Aeropostale Shares Slide after Outlook

Updated to account for stock-price movement.

NEW YORK ( TheStreet) -- Aeropostale (ARO - Get Report) saw its shares slide by as much as 10% Thursday morning after the teen clothing retailer issued a cautious outlook, even while reporting third-quarter earnings that surged from a year ago.

Less than hour after the opening bell, Aeropostale shares were changing hands at $39.46, down $3.24, or nearly 10%, from their finish in the previous session.

The retailer, which released third-quarter results after the close Wednesday, revised its fourth-quarter guidance to a range between $1.20 to $1.24, the lower end of which fell below the current average analyst estimate of $1.23 a share.

For the just-ended period, Aeropostale posted a profit of $62.6 million, or 92 cents a share, squeaking past the Wall Street consensus target of 91 cents a share. Revenue came to $567.8 million, also slightly better than what analysts had, on average, been expecting: $566.5 million.

As for year-over-year comparisons, Aeropostale's third-quarter profit jumped 47% from last year's $42.6 million, or 63 cents a share. Revenue increased 18% from the $482 million the company took in a year ago.

Same-store sales, the New York-based retailer said, rose 10% for the quarter. For the month of November, however, the pace of Aeropostale's same-store sales growth eased back a bit, rising 7%.

Aeropostale -- which had been one of the stronger names in retail, its stock gaining 130% year-to-date -- fell short of Wall Street expectations with that November sales result. (Analysts were looking for a decline of 7.7%.) It wasn't alone.

There was pain across the retail sector Thursday as the November numbers appeared to prove that consumers didn't spend as much as Wall Street had hoped on the day after Thanksgiving. Abercrombie & Fitch (ANF - Get Report) reported disappointing November sales results, and its shares dropped 4%.

-- Written by Scott Eden in New York

Follow TheStreet.com on Twitter and become a fan on Facebook.

Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining TheStreet.com, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ARO $3.36 0.00%
ANF $22.31 0.00%
AAPL $127.60 0.00%
FB $83.09 0.00%
GOOG $535.38 0.00%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs