Shares of Aeropostale Inc. slip 17 percent in early after-market trading to $3.75 after the company posted dismal first-quarter results.
For the three months ended May 3, the company saw a wider net loss at $76.8 million, or 98 cents a diluted share, from $12.2 million, or 16 cents, a year ago. Wall Street’s consensus was a loss of 72 cents a share. The company had a restructuring charge of $34.5 million, which widened its operating loss to $83.4 million from an operating loss a year ago of $20.7 million. Net sales fell 12.5 percent to $395.9 million from $452.3 million. Comps fell 13 percent, on top of a comps decline of 14 percent in the same year-ago quarter. Analysts were expecting sales of $410 million for the quarter.
Thomas P. Johnson, chief executive officer, cited the same factors that affected other retailers, a macroeconomic environment impacted by “aggressive promotions, lower mall traffic and unseasonable weather.” One bright spot Johnson noted was that the chain ended the quarter with “inventories well-controlled.”
For the second quarter, Aeropostale expects operating losses of $49 million to $54 million, or a diluted EPS range of 55 cents to 61 cents.