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Aeropostale swings to big loss in Q3

New York -- Aeropostale reported a loss of $25.6 million for its fiscal third quarter, compared to a profit of $25 million in the same period last year.

Sales dropped 15% to $514.6 million, from $605.9 million in the year-ago period. Same-store sales also decreased 15%.

"Our comparable sales decline was in-line with our year-to-date trend, and we were more promotional than anticipated in order to strengthen our inventory position going into the fourth quarter,” said Thomas P. Johnson, CEO. “…We were disappointed in our overall performance as customer adoption is occurring more slowly than we would like against the backdrop of a challenging teen retail environment."

For fiscal 2014, the company said it plans to open 11 Aeropostale stores, five P.S. from Aeropostale stores, remodel 26 Aeropostale stores, and close 40 to 50 Aeropostale stores.

 

© 2014