Aeropostale swings to Q2 loss; increases store closings

New York -- Aeropostale posted a loss of $33.7 million for the fiscal second quarter that ended Aug. 3, compared to a profit of $71 million a year ago. The teen retailer issued a weak outlook, and upped the number of stores that it plans to close.

Sales decreased 6% to $454.0 million from $485.3 million a year ago. Same-store sales, including the e-commerce channel, fell 15%.

The retailer said it now plans to shut down 30 to 40 Aeropostale locations this fiscal year. Previously, it had stated its plans to close 15 to 20 stores.  

In a statement, Thomas P. Johnson, CEO, commented: “Our business was pressured by a challenging teen retail environment with weak traffic trends and high levels of promotional activity. Our results were particularly disappointing given the level of change we have registered with the Aeropostale brand in recent periods.”

Login or Register to post a comment.