Aeropostale Inc. (ARO) on Thursday reported a fiscal second-quarter loss of $63.8 million, and its shares fell in extended trading after the company forecast a bigger-than-expected loss for the current quarter.
The New York-based company said it lost 81 cents per share. Adjusted for asset impairment costs and pretax expenses, its loss totaled 46 cents per share.
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The results beat Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for a loss of 48 cents per share.
The teen clothing retailer posted revenue of $396.2 million in the period, which missed Street forecasts. Analysts expected $405.8 million, according to Zacks.
Aeropostale and fellow teen apparel stalwarts Abercrombie & Fitch Co. and American Eagle Outfitters Inc. have had a difficult time turning their businesses around as mall traffic drops and shoppers' tastes change. The company is closing mall locations and intends to focus on online sales, outlet stores and licensing deals.
Aeropostale has lost money for seven consecutive quarters and it forecast a loss of 44 to 48 cents per share for the quarter ending in October. FactSet says analysts expected a loss of 33 cents per share.
The stock lost 28 cents, or 7.2 percent, to $3.63 in aftermarket trading.
The company said Monday that Julian Geiger will return as its CEO. Geiger was chairman and CEO of Aeropostale from 1998 to 2010, when he stepped down and was replaced by Thomas Johnson. He remained chairman until he left the board in 2012.
Johnson left the board of directors in addition to relinquishing the CEO title.
Aeropostale shares have fallen 57 percent since the beginning of the year. At the close of trading on Thursday, shares were trading at $3.91, a decrease of 66 percent in the last 12 months.