Aeropostale reports sales struggles in Q2 2015

By

Obi Anyanwu

Published
Aug 31, 2015

Aeropostale, Inc. announced its financial results for the second quarter of fiscal 2015. The company reported decreases in sales numbers in what they considered to be a transitional period for the brand.

 
Net sales for the second quarter decreased 17% to $326.9 million from $396.2 million in second quarter 2014, and comparable sales, including e-commerce, decreased 8% versus a 13% decrease in the previous year. The company had an operating loss of $37.4 million, and closed 23 Aeropostale stores in the quarter.
 
Julian R. Geiger, Chief Executive Officer, commented, "The second quarter was an important transitional time for us in which we set the stage for the second half of the year.  We attained very high levels of merchandise currency, we delivered our new back to school merchandise, and we refocused our marketing efforts around key items, all while attaining operating results consistent with the better end of our guidance."

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Aeropostale expects its sales losses to range between $19 million and $25 million, or a range of $0.30 to $0.38 per diluted share.
 
Geiger continued, "We are encouraged by our progress during the initial part of the Back-To-School season, especially the significant improvement in our girls business.  Our third quarter outlook reflects a continuation of the momentum we have generated in the quarter-to-date period.  This guidance indicates a significant reduction in operating loss versus last year."