This Day On The Street
Continue to site
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

The Deal: Sycamore to Pursue Aeropostale Just Like Talbots

Meanwhile, back at Aeropostale, the company ended the second quarter with cash and cash equivalents of $100.3 million and no debt. This lack of debt, coupled with disappointing earnings and a share price drop makes it an even likelier target for a firm like Sycamore that specializes in distressed retailers.

For example, there was the firm's March acquisition of Hot Topic Inc. for $600 million. And, when Kaluzny was at Golden Gate, he did a whole slew if distressed retail deals including Eddie Bauer.

And Aeropostale isn't likely to turn around on its own any time soon. In its third quarter guidance the company said it expected a loss in a range between $0.21 and $0.26 per diluted share, compared to earnings of $0.31 per diluted share for the third quarter of 2012. Aeropostale also made plans to double its projected store closings in 2013 to between 30 and40.

For fiscal 2014 ending Jan. 31, Aeropostale is projected to have revenue of nearly $2.2 billion and negative Ebitda of nearly $18 million, according to Bloomberg estimates. That compares to nearly $2.4 billion in revenue for fiscal 2013 and Ebitda of about $125 million.

The company did not immediately return calls seeking comment.

-- Written by Richard Collings in New York
2 of 2

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TLB $0.00 0.00%
ARO $0.04 -12.50%
AAPL $92.69 -0.59%
FB $119.49 1.40%
GOOG $711.11 1.40%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs