Struggling teen-apparel retailer Aeropostale Inc. (ARO), Thursday said its first-quarter loss narrowed from a year ago, driven largely by stronger margins even as revenues continued to plunge dropped.
Nevertheless, the company lost almost one-fifth of its market value in after-hours trade, with the loss was more than what Wall Street expected. Revenues also missed expectations. Looking ahead, the retailer detailed a poor outlook for the first quarter.
New York-based Aeropostale's first-quarter loss narrowed to $45.3 million or $0.57 per share from last year's loss of $76.8 million or $0.98 per share.
Excluding items, adjusted loss for the quarter was $0.56 per share compared to a loss of $0.52 per share a year ago. On average, 21 analysts polled by Thomson Reuters estimated a loss of $0.55 per share for the quarter. Analysts' estimates typically exclude special items.
Aeropostale's net sales for the quarter plunged 20 percent to $318.6 million from $395.9 million a year ago. Analysts had a consensus revenue estimate of $325.0 million for the quarter.
Same-store sales, including the e-commerce channel, for the quarter declined 11 percent compared to a decrease of 13 percent last year. Gross margin, or percentage of sales left after deducting cost of sales, improved to 18.6 percent from 17.8 percent last year.
Looking forward to the second quarter, the company expects a loss of $0.60 to $0.52 per share. Analysts currently expect a loss of $0.37 per share for the quarter.
ARO closed Thursday's trading at $2.59, up $0.07 or 2.78%, on the NYSE. The stock, however, plunged $0.49 or 18.92% in the after-hours trading.
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