Aeropostale To Cut 100 Jobs As Part Of Cost-saving Program, Reiterates Fourth-quarter Guidance

By Markets MarketWatch Pulse

Aeropostale Inc. said it will cut 100 jobs, or about 13% of staff, as part of a program that is expected to generate between $35 million and $40 million in annual pre-tax savings. The mall-based teen retailer said in a release Tuesday that the savings will be achieved in fiscal 2016. The company expects to record about $1.5 million in pre-tax expenses during fiscal 2015 related to the program. The company's Chief Executive Officer Julian Geiger has relinquished 1 million in stock options that will be used "by the company solely for the purposes of motivating and retaining other key members of the organization," the release said. The company reaffirmed its fourth-quarter guidance, forecasting a loss between 4 cents and 17 cents per share. This forecast doesn't include the impact of the job cuts, store impairments or unexpected closures, lease buyout costs or real estate consulting fees. Aeropostale will announce fourth-quarter 2015 earnings on Mar. 10. Aeropostale stock is down 92% for the previous 12 months while the S&P is down 4.4% for the same period.

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