Teen retailer Aéropostale Inc. posted a wider first-quarter net loss.
The chain said on Wednesday in a regulatory filing with the Securities and Exchange Commission that the net loss for the period ended April 30 was $58.4 million, or 73 cents a diluted share, from a net loss of $45.3 million, or 57 cents, a year ago. Net sales fell 6.3 percent to $298.6 million from $318.6 million.
The chain filed a voluntary petition for Chapter 11 bankruptcy court protection on May 4 in a Manhattan bankruptcy court.
In the regulatory filing, or Form 10-Q, the retailer said declining mall traffic due to a shift in customer demand away from apparel to technology and personal experiences and a highly promotional retail environment contributed to its “unfavorable financial performance.” The company has had declining comparable-store sales and has incurred net losses from operations.
The company conducted a strategic business review in the fourth quarter and in January began an aggressive cost-reduction program. In March, the company said it would explore strategic and financial options. At the time it filed for bankruptcy court protection, the company said it planned to emerge in six months with a “right-sized store footprint.”
The teen chain has been pursuing a dual track that includes a restructuring of operations and a sale process to see which option creates the best return to creditors. Aéropostale has until Aug. 26 to conclude a sale or reorganization of the company.