Aeropostale announces losses for its first quarter

By

Obi Anyanwu

Published
May 26, 2015

Aeropostale, Inc. revealed its first quarter 2015 results and guidance for the second quarter. The mall-based specialty retailer had a rough start to the year that included a decrease in sales, a net loss, and store closures.

For the first quarter, the company saw a decrease in net sales by 20% to $318.6 million, from $395.9 million in the previous year. Comparable sales, including the e-commerce channel, decreased 11%, compared to a decrease of 13% for the same period a year prior. Finally, the company reported a net loss of $45.3 million and an adjusted net loss of $44 million.
 
In its first quarter, Aeropostale opened one store but closed 12, and invested $2.6 million in planned capital expenditures.

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Julian R. Geiger, Chief Executive Officer, commented, "As we anticipated, the first quarter of 2015 represented a period of transition for us. We worked our way through a number of issues, including a merchandise assortment that was not consistent with our future direction, unseasonably cool weather, and the West Coast port slowdown.  However, the performance of our women's division exceeded our expectations, and we were encouraged by the demand we were able to create through certain key items and promotions."
 
For its second quarter of the 2015 financial year, the company expects operating losses ranging between $37 and $43 million.
 
Mr. Geiger continued, "As I have said previously, the Back to School period represents the time when all of the disciplines and strategies we have instituted over the last nine months should come to fruition.  To prepare for this key selling season, we are focused on optimizing the quantity and composition of our merchandise to ensure a successful Back to School launch.  We are enthusiastic about seeing the results that this key period will bring."