Aeropostale now anticipates a smaller fourth-quarter loss than it had forecast earlier due to better-than-expected margins and expense management.
Its stock rose in Thursday premarket trading.
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The company, which sells clothing for young women and men, said that it now foresees a quarterly loss of about 25 cents to 31 cents per share. Its prior guidance was for a loss of 37 cents to 44 cents per share.
Analysts polled by FactSet expect a loss of 42 cents per share.
The outlook doesn't include the impact of any asset impairments, accelerated store closure costs, or real estate consulting fees.
Aeropostale also said that for the nine-week holiday period ended Jan. 3 its comparable sales — which includes online sales — fell 9 percent. This is better than the 15 percent decline it had in the year-ago period.
Total sales for the nine-week period dropped 11 percent to $507.8 million.
Aeropostale Inc. expects to report its fiscal fourth-quarter and full-year earnings results on March 12.
Shares of the New York company rose 14 cents, or 6.2 percent, to $2.40 about an hour before the market open.