Aeropostale appoints CFO as Q4 sales tumble
Aeropostale revealed a net sales decreased 11%
Teen apparel retailer Aeropostale has appointed a new CFO and COO to realign responsibilities and strengthen its leadership team as it revealed a drop in fourth-quarter sales.
Chief finance officer Marc Miller has been promoted to the role of chief operating officer. He joined Aeropostale in 2005 as VP of strategic planning and new business development and was appointed CFO in 2010.
Replacing him is David Dick, who will take up the role of finance chief on 17 February. Previously working in the food industry, he held the role of SVP and CFO of Delia's from 2009 to 2014.
The news comes as Aeropostale revealed a net sales decrease of 11% to US$594.5m in its fourth-quarter. This is from revenues of $670m in the year ago period. Comparable sales, including the e-commerce channel, were down 9%, compared to a 15% decrease last year.
The results, however, beat the firm's updated guidance, CEO Julian Geiger said. "I am encouraged with the progress we are making and that we were able to deliver higher comparable sales and margins in January, which allowed us to exceed our updated guidance.
“With today's announced executive appointments, we are returning to an organisational structure that existed when Aeropostale registered its most significant gains in sales and profitability. As a result of this progress and of the changes we are making, I believe we are better positioned to restore the luster of the Aeropostale brand and our overall financial results, as we continue to navigate through a challenging retail environment."
Based on better than expected sales, margins, and expense management for the month of January, the company said it now expects an operating loss/profit for the fourth quarter in the range of ($2m) to $2m.
Stifel analyst Richard Jaffe, noted: "We believe the stock will likely trade higher on today’s announcement of better than expected results. However we reiterate our Hold rating. We believe the reward potential is limited near term and risk remains significant, given the current fashion, merchandising, and retail consumer challenges."
- Why do modern robotics elude sportswear makers?
- Mexico makers bullish on Trump's proposed tariffs
- Traditional financing is a misfit for fast fashion
- How would end of NAFTA affect US apparel industry?
- Bagir CEO says suit-maker is back on track
- US Q3 in brief - G-III Apparel, Express
- Bagir exports first trousers for H&M from Ethiopia
- Fruit of the Loom CEO Medlin dies suddenly
- Throwaway fast fashion model needs re-think
- Crystal expands empowerment project to male staff
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022
- Global apparel markets: product developments and innovations, October 2016
- Footwear Top 5 Emerging Markets Industry Guide_2016
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack