Wall Street expected earnings per share of 22 cents on sales of $775.7 million.
“Our results for the fourth quarter and fiscal year were disappointing. However, we made progress during 2012 against our strategic initiatives,” said chief executive officer Thomas Johnson. “We added new talent to our team, injected more-relevant fashion into our assortments and developed our next-generation store model.”
The company, which posted an 8 percent decline in quarterly same-store sales, said it was pressured to slash prices during holiday to pique demand. This pushed quarterly gross margins down to 19.9 percent of sales from 24.3 percent a year earlier.
The teen retailer predicted a first-quarter loss in the range of 15 cents to 20 cents a diluted share, compared with year-ago earnings of 13 cents. Analysts expected a profit of 8 cents a share. The earnings cut assumes a double-digit same-store sales decline, the retailer said on its conference call to analysts and investors.
“We anticipate a challenging first quarter as a result of expected margin pressures from holiday carryover inventory and the impact of a weak macroeconomic environment,” Johnson said. “We will continue to plan our business conservatively and manage our cost structure carefully. While we face near-term challenges, we believe we have the right strategies and the right team in place to improve the trajectory of our business.”
With increased competition in the mall and an offering rooted in basics, and not fashion looks, Aéropostale said its fiscal 2012 net income took a hit, declining 49.8 percent to $34.9 million, or 43 cents a diluted share. Annual net sales remained steady, creeping up 1.9 percent to $2.39 billion.
In honor of Rihanna’s 30th birthday, we took a look back at an interview with the Barbados-native when she was just 18 years old. Here, she talked about her second album, “A Girl Like Me” in 2006. “I want to be me. I want people to fall in love with who Rihanna is, and that’s why I want the album to be about me so people can really find out who this girl Rihanna is, because they only know the ‘Pon de Replay’ girl.” Fast forward 12 years, and she’s released six more albums and has become a powerhouse in both the fashion and music industries. Happy birthday, @badgalriri 🎈(📷: Pavel Antonov) #wwdarchive
For @simonerocha_‘s fall show, hairstylist @jamespecis created a look inspired by the painter John Constable. Models’ hair was pulled back, tied into knots and topped off with a bow. (📷: @kukukuba) #wwdbeauty #lfw
Queen Elizabeth made a surprise appearance at @richardquinn1's London Fashion Week show to present the designer with the inaugural Queen Elizabeth II Award for British Design. The new award will be handed out annually to an emerging British fashion designer who shows exceptional talent, while demonstrating value to the community and sustainable policies. #wwdfashion #lfw (📷: @giovanni_giannoni_photo)