Aeropostale Teeters on Lower Profits
Fourth quarter financials were bared by Aeropostale Incorporated (APO) to its investors recently. The company, which is mall-based and sells casual apparel and accessories for young adults, also gave details of its earnings cheat sheet for the same quarter. The results revealed net income falling to $26 million, translating to 32 cents per share, compared to $84 million, or 95 cents per share, a year ago. The figures represent a decline of 69 on year-to-year basis.
Revenue also dropped by almost 4 percent as against the previous year’s figure and was reported at $808 million. Yet, Aeropostale bared 44 cents per share in adjusted net income, surpassing the average estimate of 38 cents per share or total revenue in the amount of $806 million.
According to CEO Thomas Johnson, management takes pride in the speed, diligence, and tenacity of its entire team in confronting the business challenges ahead. The company worked swiftly with its strategies throughout the year to infuse freshness into its assortment of merchandise and evolve a unique projection of its fashion message. Johnson was also of the belief that while the overall financials of the company was disappointing, last year proved to be a crucial inflection of the organization.
Aeropostale seems to be recovering form the head and shoulders pattern that was produced in the years 2009-2011. The closest important resistance levels for the stock, which is currently trading a fraction below $19, are $21 and $24.$15 should act as a support.