Aeropostale Plunges on Co-CEO Departure, Weak Outlook
NEW YORK (
) --
Aeropostale's
(ARO)
stock is plunging after-hours following the departure of Co-CEO Mindy Meads and disappointing third-quarter earnings and forecast.
Thomas Johnson, who served as Co-CEO along with Meads, will now take the reins on his own. Meads said she will be departing from the company to pursue other career opportunities.
Aeropostale also reported third-quarter earnings of $58.5 million, or 64 cents, a 6.5% decline from $62.6 million, or 62 cents, in the year-ago period.
The current quarter included a 4-cent charge related to the retirement plan of former CEO Julian Geiger, which is not included in consensus estimates.
Sales grew 6% to $602.8 million from $567.8 million, while comparable sales were essentially flat. In November, the teen retail saw same-store sales slide 1%.
Analysts were calling for a profit of 66 cents a share on revenue of $606 million.
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Looking ahead, Aeropostale expects to see fourth-quarter earnings in the range of 94 cents to 96 cents a share, a decline from 99 cents a share in the same period last year. Wall Street is looking for a profit of $1.03 a share.
Shares of Aeropostale are tumbling 5.6% to $25.30 in after-market trading.
--Written by Jeanine Poggi in New York.
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