Aeropostale Inc. (ARO), a retailer of casual clothing and accompaniments for youths, goes global with its e-commerce site, Aeropostale.com. The company recently announced the launch of international shipping across 90 countries in different continents around the globe.
The move was evident as many retailers, including Gap Inc. (GPS) and Macy’s Inc. (M), have incorporated the same strategy to tap a wider market and boost sales through online shopping.
During the second quarter of 2011, Aeropostale’s e-commerce business increased to $25.1 million, up 20% from $20.9 million in the year-ago quarter.
The announced strategy will better position the company to offer its international customers a wide range of collections in apparel, including its celebrated hoodies, denims, graphic tees and fashion accessories. Aeropostale teamed up with FiftyOne, the leading provider of international e-commerce services to the U.S.retailers, for the move.
Further, the move is highly accretive to the company’s online sales as it will enable Aeropostale to generate additional sales and broaden its existing customer base throughout the world. Moreover, it will also enhance the visibility and reputation of Aeropostale as a global firm offering great fashion and value.
Aeropostale offers its consumers’ premium, active-oriented fashion apparel along with fashion accessories at compelling values. In addition, the company keeps strong hold on its proprietary brands by designing, sourcing, marketing and selling all of its own goods.
Going with the guidance, the company expects third-quarter 2011 earnings in the range of $0.09 to $0.15 per share, which is well below the earnings of $0.63 per share in the year-ago quarter.
Currently, Aeropostale holds a Zacks #4 Rank, which implies a short-term ‘Sell’ rating (for the next 1–3 months).
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