• Q3 adjusted net loss US$35.2m, up from $25.6m
  • Net sales down 12% to $452.9m
  • Comparable store sales fall 11%
Aeropostales third-quarter loss widened to $52.3m

Aeropostale's third-quarter loss widened to $52.3m

Analysts gave a mixed response to apparel retailer Aeropostale’s third quarter adjusted net loss of $35.2m, with net sales and comps falling by double digits.

The US company’s reported loss for the period was $52.3m, including a number of one-off impairment and buyout charges, compared to a reported loss of $25.6m for the same period last year.

Newly returned CEO Julian Geiger said the company had made “small but measurable steps in the right direction”, with results in line with its own guidance.

He added: “During my first 100 days back at Aeropostale, I have developed and begun executing my vision of, and game plan for, positioning and returning the company to profitability.

“In that time, we have also continued to support and accelerate a variety of well-conceived and executed merchandising, marketing, operational and financial initiatives that started before my arrival.”

Analyst FBR & Co voiced cautious optimism about the company’s prospects, saying in a note: “While we believe the business will continue to be challenged in the near term, we were encouraged by the refreshed strategic initiatives laid out by [Aeropostale’s] new CEO, most notably the improvements in organisational structure (creating a single-channel approach to product development) and in assortment planning and allocation.”

But rival analyst Stifel was less impressed, saying: “Despite a new advertising campaign and improved brand perception, traffic and conversion rates remain weak, evidence to us that the company’s merchandise assortment is not resonating with consumers.”