In furtherance of the global consolidation of its brand,
) announced its plans to expand in Mexico. Starting this summer,
the company through a licensing agreement with Distribuidora
Liverpool, S.A. de C.V., will open Aeropostale shops within
Liverpool department stores across Mexico.
Alongside, Aeropostale will be opening its own standalone
stores in Mexico, of which the first store is slated to open in
This strategic move reflects the company's efforts to
strengthen its position in regions where it could generate strong
sales. Moreover, the expansion of its store base in Mexico will
help widen its growth prospects and facilitate it to hedge
against economic cycles.
Aeropostale has been grappling with lower sales and
profitability as macroeconomic headwinds, higher promotional
costs and increased inventory levels are taking a toll on its
The company earlier stated that macroeconomic headwinds will
adversely affect its margins and in turn earnings. Consequently,
it expects to report loss per share in the range of 15 cents to
20 cents in the second quarter of fiscal 2013.
This Zacks Rank #3 (Hold) teen clothing store chain currently
operates through 898 Aeropostale stores and 132 P.S. from
Aeropostale stores. Moreover, the company operates 78 Aeropostale
stores in Canada.
Other Stocks to Consider
Until any further upward revision in the Zacks Rank on
Aeropostale, other apparel retailers worth considering include
The Gap, Inc
Stein Mart Inc
Pacific Sunwear of California Inc
), all carrying a favorable Zacks Rank #2
AEROPOSTALE INC (ARO): Free Stock Analysis
GAP INC (GPS): Free Stock Analysis Report
PAC SUNWEAR CAL (PSUN): Free Stock Analysis
STEIN MART INC (SMRT): Free Stock Analysis
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