Retail

What to Expect From Aeropostale Earnings

Chris Lange

Published: March 16, 2016 11:35 am

Last Updated: March 13, 2020 10:05 pm

Aeropostale Inc. (NYSE: ARO) is scheduled to report its fiscal fourth-quarter financial results after the markets close on Thursday. The consensus estimates from Thomson Reuters call for a net loss of $0.14 per share on $521.19 million in revenue. In the same period of the previous year, the retailer posted earnings per share of $0.01 on revenue of $593.76 million.

This company is slowly coming to the understanding that it may need to turn to e-commerce to survive in the future. Aeropostale only saw growth in one segment over the past three years: international licensing. Unfortunately, that only represents a tiny 2% of the company’s revenue in fiscal 2014. Perhaps Aeropostale could take it a few steps further and focus exclusively on licensing all of its products to someone else and make Amazon the sole seller.

In late 2014, Julian Geiger had just taken over the CEO position at Aeropostale with the goal of returning the company to profitability. However, this has not been the case over the past year. In fact, during this time Aeropostale has slipped even lower; just 52 weeks ago the stock was over the $3 mark.

Some might even suspect, with the performance that this company has had over the past few years, that this might be a brand that disappears in the near future. These earnings are crucial if Aeropostale expects to stay alive.

A few analysts weighed in on Aeropostale prior to the release of the earnings report:

• Stifel reiterated a Hold rating.
• SunTrust has a Neutral rating for the stock.
• Mizuho reiterated a Hold rating.

So far in 2016, Aeropostale has outperformed the broad markets, with the stock up 68%. Over the past 52 weeks, the stock is down 84%.

Shares of Aeropostale were trading up 2.2% at $0.48 on Wednesday, with a consensus analyst price target of $0.76 and a 52-week trading range of $0.16 to $3.64.