Casual apparel retailer Aeropostale Inc. (ARO) said Wednesday its profit for the third-quarter declined from last year, hurt by lower margins and a 9 percent drop in same store sales. Nonetheless, earnings per share for the quarter topped Wall Street estimates, as did sales.
Looking ahead, the mall-based specialty retailer forecast a weak earnings outlook for the fourth quarter, citing fierce competition amid the holiday season and the continued economic uncertainty.
New York-based Aeropostale reported third-quarter net income of $24 million or $0.30 per share, down from $58.5 million or $0.63 per share last year.
Results for the prior-year quarter included an after-tax charge of $0.04 per share, excluding which non-GAAP net income for that period would have been $0.67 per share.
On average, 29 analysts polled by Thomson Reuters expected earnings of $0.28 per share for the quarter. Analysts' estimate typically exclude one time items.
The company's total sales for the quarter declined to $596.5 million from $602.8 million a year ago. Wall Street analysts expected revenues of $581.50 million.
Aeropostale said results were impacted by a 9 percent decline in same store sales, compared to almost flat same store sales in the prior year.
Sales from e-commerce business for the quarter improved 19 percent to $45.7 million from $38.3 million a year ago.
Gross margin for the quarter deteriorated to 27.1 percent from 36.6 percent last year.
During the quarter, the company opened 7 Aeropostale and 6 P.S. from Aeropostale stores. At the end of the quarter, it operated 1,055 stores, compared to 1,002 last year.
Aeropostale ended the quarter with cash and cash equivalents of $109.4 million, and no debt. It currently has $145.2 million available under its share repurchase program.
Looking ahead, the company expects fourth-quarter net earnings of $0.35 to $0.38 per share.
Street analysts currently expect earnings of $0.44 per share for the fourth quarter.
Chief Executive Officer Thomas Johnson said the retail environment is getting more promotion-based and economic conditions continue to be challenging.
ARO closed Wednesday's regular trade at $15.51, up $0.77 or 5.22%, on a volume of 3.9 million shares on the NYSE. In after hours, the stock dropped $0.16 or 1.03%.
For comments and feedback contact: editorial@rttnews.com
Business News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.