Dive Brief:
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Aeropostale’s Q4 same-store sales fell 9%, the tenth straight quarter of decreases. Net sales fell 11.3% to $593.8 million. In something of a surprise, the retailer Thursday did report its first adjusted quarterly profit in two years of losses.
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The retailer has been closing stores and said it may close another 50 to 75 this year.
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Bad weather and shipping delays piled on top of changing teen shopping behavior has led Aeropostale Inc. to forecast a bigger quarterly loss than analysts were expecting, the company said Thursday.
Dive Insight:
The turnaround efforts Aeropostale has been taking — closing stores and changing up merchandise — continues. But the payoff has been delayed thanks to pressures from bad weather and inventory shipping delays from the West Coast.
The weather will likely improve before the inventory issues do. Nevertheless, CEO Julian Geiger said Thursday that the retailer will see the results of merchandising changes during this year’s back-to-school season.
"Despite being off to an inconsistent start in the first quarter, we believe that we will see slow and sequential improvements in our performance over the first half of the year," he said.