Aeropostale's Stock Drops As Surprise Adjusted Profit Is Offset By Weak Outlook

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Shares of Aeropostale Inc. slumped 6.8% in after-hours trade Thursday, after teen apparel retailer's surprise fiscal fourth-quarter adjusted profit was offset by a wider-than-expected loss outlook for the current quarter. For the quarter ended Jan. 31, the net loss narrowed to $13.5 million, or 17 cents a share, from $70.3 million, or 90 cents a share, in the same period a year ago. Excluding non-recurring items, such as asset impairment charges, adjusted per-share earnings were 1 cent, compared with the FactSet consensus analyst estimate of a 3-cent loss. Sales fell 11% to $593.8 million, while same-store sales declined 9%, compared with the FactSet consensus of $595 million and a decline of 9%, respectively. For the fiscal first quarter, Aeropostale expects a per-share loss of 53 cents to 61 cents, compared with the FactSet consensus loss estimate of 35 cents. "Our first quarter outlook for 2015 reflects challenging trends as we continue to see softness in consumer demand as a result of weak traffic," said Chief Executive Julian Geiger. The stock has run up 60% in the past three months through Thursday's close, compared with a 3.2% gain in the S&P 500.

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