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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


WATCH: More market update videos on TheStreet TV | More videos from Keris Alison Lahiff

If you liked this article you might like

Consumer Revolution: Unbranded Retailers Are Stealing Market Share

Consumer Revolution: Unbranded Retailers Are Stealing Market Share

How Urban Outfitters and American Eagle Keep Teens Hooked

How Urban Outfitters and American Eagle Keep Teens Hooked

Aeropostale CEO Claims Largest Investor Wanted It to Fail

Aeropostale CEO Claims Largest Investor Wanted It to Fail

Stocks Extend Losses as China Sparks Growth Worries

Stocks Extend Losses as China Sparks Growth Worries

Here Are the 3 Biggest Retailers to File for Bankruptcy This Year

Here Are the 3 Biggest Retailers to File for Bankruptcy This Year