New York – Aeropostale Inc. reported a net loss of $76.8 million in the first quarter of fiscal 2014, up from the $12.2 million net loss it reported a year earlier. It also projected a second-quarter loss forecast bigger than analysts expected.
The struggling retailer, which has reported a loss for six consecutive quarters, had a generally difficult quarter overall, as net sales fell 12% to $395.9 million from $452.3 million and same-store sales decreased 13%. Aeropostale has reported declining comparable sales for seven straight quarters.
Aeropostale cited restructuring charges as contributing to its growing net loss, and also attributed some of its poor performance to the impact of weather and promotions.
In April, Aeropostale said it will close 125 mall-based P.S. from Aeropostale kids stores by the end of the fiscal year so it can focus on online sales, outlet stores, and licensing. It is also cutting some corporate jobs.
"As other retailers experienced, the macroeconomic environment was challenging during the first quarter with aggressive promotions, lower mall traffic, and unseasonable weather,” said Thomas P. Johnson, CEO of Aeropostale. “While our overall results were disappointing, we were able to exceed guidance and end the quarter with inventories well-controlled.