- Plans to exit the P.S. from Aeropostale mall locations – Based on changing consumer patterns, particularly of the "mom" shopper, the Company has made the determination to close approximately 125 mall-based P.S. from Aeropostale stores by the end of fiscal 2014. The Company plans to restructure the brand to focus on faster growing sales channels, including off-mall locations (including outlets), e-commerce, and international licensing. The Company is also exploring other potential third party distribution channels. By taking these steps, the Company expects to eliminate pre-tax losses of approximately $15 million that were generated in the mall-based business in fiscal 2013, excluding any impairment charges.
- Streamlining and improvement of expense structure – Following a thorough review of the Company's current cost structure, Aeropostale has implemented a cost reduction plan that will target both direct and indirect spending across the organization. This includes the Company's plans to reduce corporate headcount by approximately 100 positions to align with current business strategies, in addition to the workforce reductions from the Company's on-going store closure program.
Aeropostale Provides Update To Strategic Initiatives
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