) tumbled to touch a 52-week low of $8.29 on Thursday, Aug 29,
and eventually closed trade at $8.36. Looking at the
year-to-date performance, the stock has disappointed too, as it
has plunged 33.7%.
Shares of this teen apparel retailer have been portraying a
downtrend since the beginning of August and given its dismal
third-quarter fiscal 2013 outlook, it has more downside left.
Aeropostale has been lurking in the red zone since the beginning
of fiscal 2013, as it posted loss for two consecutive quarters.
Macroeconomic headwinds, adverse weather conditions hurting the
top line, higher promotional costs, weak traffic and an increased
inventory level hampered the company's profitability in the first
half of fiscal 2013.
For the first quarter, Aeropostale reported a loss of 16 cents
per share that was down considerably from earnings of 13 cents in
the comparable year-ago quarter. The loss further widened to 34
cents during the second quarter. (Please also read:
Aeropostale Posts Loss in Q2
Investors remain wary of this Zacks Rank #4 (Sell) stock as the
company provided tepid outlook for the upcoming quarter.
Aeropostale stated that weak traffic, higher costs and
competition will adversely affect its margins and consequently,
earnings as well. Therefore, it expects to report loss per share
in the range of 21 cents to 26 cents in the third quarter.
Aeropostale's dismal quarterly performance was reflected in the
downward movement in the Zacks Consensus Estimate, as analysts
became less constructive about the stock's future performance.
The Zacks Consensus Estimate for fiscal 2013 plunged
significantly in the last 7 days.
It now stands at a loss of 62 cents per share, down from
earnings of 18 cents. For fiscal 2014, most of the estimates were
revised downward over the past 7 days, bringing down the Zacks
Consensus Estimate to a loss of 12 cents per share from earnings
of 48 cents.
ANN INC (ANN): Free Stock Analysis Report
AEROPOSTALE INC (ARO): Free Stock Analysis
DSW INC CL-A (DSW): Free Stock Analysis
L BRANDS INC (LTD): Free Stock Analysis
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We do not see any significant catalyst that can rekindle the
stock's momentum in the near term.
However, not all apparel retailers are faring as poorly as
L Brands, Inc.
), all of which hold a favorable Zacks Rank #2 (Buy) are worth