NYSE-listed retailer of casual apparel - Aeropostale, Inc reported a 13% year-on-year decline in net sales and a corresponding decrease in comparable store sales for the second fiscal quarter of 2014.
For the second quarter of 2014, Aeropostale net sales dwindled 13% to $396.2 million from $454.0 million, in the year ago period. Comparable store sales, including e-commerce revenues too fell 13% from the second fiscal quarter of 2013.
Aeropostale reported a net loss of $63.8 million, or $0.81 per diluted share in second quarter of 2014, while adjusted net loss stood at $36.0 million, or $0.46 per diluted share after considering various after-tax charges totalling to $27.8 million.
In the quarter under review, the retailer opened four Aeropostale stores and one Aeropostale and P.S. from Aeropostale combination store, and closed 11 Aeropostale stores and three P.S. from Aeropostale stores and invested $7.2 million in planned capital expenditures.
Aeropostale ended the quarter with cash and cash equivalents of $152.3 million and $133.6 million in long-term debt.
Julian Geiger, CEO said, “I am encouraged that we were able to achieve higher average unit retails and margins, as well as better expense control during the second quarter, which allowed us to exceed guidance.”
For the third fiscal quarter of 2014, Aeropostale expects operating losses in the range of $33.0 to $37.0 million, which translates to a net loss in the range of $0.44 to $0.48 per diluted share. The effective tax rate for the third quarter is projected to be approximately 4.0%, it said.
The apparel retailer operates 848 Aeropostale stores in 50 US states and Puerto Rico and 75 in Canada and 147 P.S. from Aeropostale stores in 31 states and Puerto Rico. In addition, its licensees currently operate 162 Aeropostale and P.S. from Aeropostale stores across various continents.
