By midafternoon, shares had added 3.5% to $7.50.
Trading volume of 5.1 million had exceeded its three-month daily average of 3 million.
Analysts surveyed by Thomson Reuters expect the teen apparel retailer to post a net loss of 31 cents a share for the three months to January as heavy discounting amid an aggressively promotional holiday season takes its toll on profitability. That compares to net income of 24 cents a share in the year-ago quarter.
Revenue is expected to fall 14.3% to $683.79 million from $797.71 million a year earlier.
For the full year, analysts anticipate a net loss of $1.10 a share on revenue of $2.1 billion. A year earlier, New York-based Aeropostale reported net income of 68 cents a share and total sales of $2.38 billion.
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TheStreet Ratings team rates AEROPOSTALE INC as a Sell with a ratings score of D. The 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 feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow."