New York – As a result of slumping net and same-store sales, Aeropostale is forecasting a net loss per share of between 42 cents and 44 cents during the second fiscal quarter of this year, which is 19 cents higher than the previously issued guidance. The revised estimate is based on a 6% decrease in net sales to $454 million, from $485.3 million in the year ago period.
Same-store sales, including the e-commerce channel, for the second quarter decreased by 15%. In addition, Aeropostale cited lower-than-expected income tax benefit due to a change in the estimated effective tax rate to 25% from 45% resulting from lower taxable income; an after-tax charge resulting from store asset impairment charges; and an after-tax charge as a result of the accounting effect related to retirement features of its stock based compensation plan.
“During the second quarter, we continued to experience the challenging trends we faced in the first quarter,” said Thomas P. Johnson, CEO. “Our performance was driven by an increase in promotional activity as we navigated through balancing our assortment, weak traffic trends and a challenging retail environment, particularly during the July selling period. As we reposition the Aeropostale brand, we believe our current merchandise assortment is more fashionable and relevant. Our entire organization is focused intently on accelerating customer adoption and regaining market share.”