Aeropostale (ARO) Stock Is Down in After-Hours Trading After Earnings Report

Aeropostale (ARO) is falling after-hours Thursday after reporting its fourth quarter results.
By Lindsay Ingram ,

NEW YORK (TheStreet) -- Shares of Aeropostale (ARO) were falling 2.7% to $3.60 after-hours Thursday after the apparel retailer reported its results for the fourth quarter.

Aeropostale reported earnings of 1 cent a share for the fourth quarter, beating the FactSet consensus estimate of a loss of 3 cents a share. Revenue fell 11.4% year over year to $593.8 million for the quarter, compared to analysts' estimates of $595 million.

The retailer said it expects to report a loss of 53 cents to 61 cents a share for the first quarter, below analysts' estimates of a loss of 35 cents a share for the quarter.

CEO Julian R. Geiger said, "Our first quarter outlook for 2015 reflects challenging trends as we continue to see softness in consumer demand as a result of weak traffic. Our organization has taken significant action over the past six months to reshape our business strategies, which should position us for improvement, particularly in the second half of 2015."

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 some concerns, 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, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."

You can view the full analysis from the report here: ARO Ratings Report

ARO data by YCharts

Loading ...