"ARO's 3Q was in line, but after a good start to November, sales slowed significantly over Black Friday weekend, putting a damper on holiday cheer," analysts said.
"Returning CEO Julian Geiger laid out a plan to get ARO back on track and on towards profitability, but as with other teen turnarounds, this one will take time too, given the multiple initiatives going on. Given ongoing challenges, we are reducing our price target and would stay on the sidelines till the plan has more time to unfold," analysts added.
Shares of Aeropostale are down 1.21% to $2.45.
Separately, 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 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 deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."