Topic: Growth Stocks

AEROPOSTALE $3.55 – New York symbol ARO

AEROPOSTALE $3.55 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding:78.5 million; Market cap: $277.6 million; No dividends paid) reported better-than-expected earnings this week. However, the high teenage unemployment rate is still weighing on its sales.

In the three months ended May 3, 2014, Aeropostale’s sales fell 12.5%, to $395.9 million from $452.3 million a year earlier. Samestore sales declined 13%.

The company is now closing all 125 of its mall-based P.S. from Aeropostale stores. If you exclude closure and other costs, it lost $0.52 a share. That was better than the consensus forecast of a $0.72-a-share loss. A year earlier, Aeropostale lost $0.16 a share.

The company now expects to lose $0.55 to $0.61 a share in the current quarter, which is worse than the consensus estimate of a $0.50-a-share loss.

Aeropostale is still a hold.

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