Aéropostale Results Top Estimates; Q1 Guidance Weak; Stock Down 7%

(RTTNews) - Aéropostale Inc (ARO), the mall-based specialty apparel retailer, on Thursday reported fourth-quarter net loss of $13.5 million or $0.17 per share compared with a loss of $70.3 million or $0.90 per share last year.

Results for the recent quarter included an after-tax charge of $9.9 million resulting from store asset impairments.

Excluding items, adjusted earnings for the quarter were $0.01 per share compared with a loss of $0.35 per share a year ago.

Revenues for the quarter were down 11% at $593.8 million compared with $670 million in the prior year.

Analysts polled by Thomson Reuters estimated a loss of $0.03 per share on revenues of $576.8 million for the quarter. Analysts' estimates typically exclude special items.

Comparable sales for the quarter slid 9% compared with a drop of 15% in the prior year, the company said.

Gross margin for the quarter improved to 22.7% from 17% last year.

For the first quarter, the company expects a loss of $0.61 to $0.53 per share, and does not include the impact of any store impairments.

Analysts expect a loss of $0.36 per share for the quarter.

The company said its guidance reflects softness in consumer demand as a result of weak traffic.