Aéropostale, the mall-based specialty retailer of casual apparel for young women and men, said on Friday that it plans to launch the Aéropostale and P.S. from Aéropostale brands in Chile through a licensing agreement with Sociedad Comercial Grupo Yes.
“We are excited to bring the Aéropostale and P.S. from Aéropostale brands to Chile as we continue to expand our international presence,” said Julian R. Geiger, chief executive officer. “Chile represents a major step in extending our business into key Latin American markets. Chile’s stable economy, and its consumers’ strong appetite for the Aéropostale brand and our fashions, make Chile an attractive retail market. We’re pleased to be working closely with such an established partner as Grupo Yes as we execute our expansion plans for Aéropostale and P.S. from Aéropostale.”
Aéropostale’s expansion in Chile includes opening stand-alone stores and selling in department stores and multibrand stores in select locations across Chile beginning in the spring. The first Aéropostale store is scheduled to open in Parque Arauco in Santiago this month. P.S. from Aéropostale units are expected to open in early 2015.
At the end of 2013, Aéropostale operated stores in Latin America, in Mexico, Colombia and Panama. Asked whether Aéropostale was targeting other Latin American countries, a spokeswoman said, “In 2014, Chile is the only announcement related to Latin American openings. That said, we continue to evaluate our real estate portfolio and look into additional geographies where it makes business sense.”
Aéropostale also operates stores in the Philippines, Bahrain, Oman, Qatar, Saudi Arabia, Singapore, Turkey, and United Arab Emirates.
Mexico is the company’s largest foreign market.
Aéropostale works with licensing partners everywhere except in the United States and Canada, where it owns its own stores.
Aéropostale Inc. for the second quarter ended Aug. 2, posted a wider loss, as well as a decline in sales.
For the three months, the net loss nearly doubled to $63.8 million, or 81 cents a diluted share, from a net loss of $33.7 million, or 43 cents, a year ago. Excluding certain charges such as store impairment costs and consulting fees, the adjusted net loss was $36 million, or 46 cents a diluted share, in the quarter, beating Wall Street’s consensus of an earnings-per-share loss of 49 cents. Net sales fell 12.7 percent to $396.2 million from $454 million, as comps fell 13 percent on top of the 15 percent.
The company said it expects to post a third-quarter operating loss of $33 million to $37 million, or diluted EPS in the range of 44 cents to 48 cents.
Analysts believe the company is making headway in terms of improving its fashion product and introducing new subbrands.