), a retailer of active and casual clothing and accompaniments
for the youth, is slated to report its fiscal third-quarter 2012
(ended October 2012) financial results on November 28, 2012.
The current Zacks Consensus Estimate for the quarter stands at
29 cents a share, representing an estimated year-over-year
decrease of about 3.2%. Revenue, as per the Zacks Consensus
Estimate, is $604 million.
Aeropostale marked a break-even during the second-quarter of
fiscal 2012, meeting the Zacks Consensus Estimate. However, the
quarterly results witnessed an improvement from a loss of 2 cents
in the comparable year-ago quarter.
Aeropostale, which competes with
American Eagle Outfitters Inc
), registered an increase of 4% in its total sales to $485.3
million from $468.2 million in the year-ago quarter. Moreover,
the reported revenue surpassed the Zacks Consensus Estimate of
Agreement of Estimate Revisions
Estimate revision for the company is exhibiting a negative
trend for the upcoming quarter as well as for the fiscal 2012.
Over the last 30 days, 3 out of 20 estimates have been revised
downwards, while none were raised for the third quarter.
Moreover, for fiscal 2012, 4 out of 21 estimates have been
lowered, while none moved in the opposite direction.
Analysts opine that as the company's assortments are gradually
improving, it will help lure its target customers and thus usher
in incremental sales. However, heightened competition, pricing
pressures, markdowns and higher promotional expenses offset the
Magnitude of Estimate Revisions
Estimates haven't budged for the upcoming quarter over the
last 30 days. However, for the fourth quarter, estimates inched
down by a penny to 54 cents.
Moreover, for fiscal 2012 and fiscal 2013, estimates decreased
by a penny to 96 cents and $1.21 per share, respectively.
Mixed Earnings Surprise History
With respect to earnings surprises, Aeropostale has topped as
well as met the Zacks Consensus Estimate over the last four
quarters in the range of 0.0% to 15.8%. The average remained at
13.5%, indicating that the company has surpassed the Zacks
Consensus Estimate by the same magnitude in the trailing four
Currently, Aeropostale holds a Zacks #4 Rank, which implies a
short-term 'Sell' rating (1-3 months) as we believe the company's
aggressive inventory offloading and lower average selling price
is likely to disrupt profit margins.
AMER EAGLE OUTF (AEO): Free Stock Analysis
AEROPOSTALE INC (ARO): Free Stock Analysis
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