NEW YORK (TheStreet) -- Shares of Aeropostale Inc.
(ARO) are down -7.93% to $3.60 in pre-market trade after the teen apparel retailer forecast a wider-than-expected loss for the fiscal third quarter as the company attempts to reverse declining sales.
Earnings for the second quarter of its 2014 fiscal year showed a GAAP loss of $63.8 million, or 81 cents per share, compared to a loss of $33.7 million, or 43 cents for the same period last year.
Analysts expected a loss of 61 cents.
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The company's revenue fell 13% year-over-year to $396 million but beat analysts' estimates of $392 million.
Aeropostale said it expects a per share loss for the fiscal third quarter of 44 cents to 48 cents, while analysts polled by Thomson Reuters were looking for a loss of 33 cents a share.
TheStreet Ratings team rates AEROPOSTALE INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AEROPOSTALE INC (ARO) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."
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