Why Aeropostale (ARO) Stock Is Down Today

NEW YORK (TheStreet) -- Aeropostale (ARO) stock is being hit hard Friday after the teen apparel retailer forecast even more pain ahead. By late morning, shares had tanked 22.1% to $3.52. 

For the quarter ending July, the company guides for net losses of 55 cents to 61 cents a share. Analysts surveyed by Thomson Reuters had expected a narrower 50-cents-a-share net loss.

In its most recent first quarter, the retailer reported a 13% drop in sales to $395.9 million.

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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, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."

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