Apparel retailer, Aeropostale, Inc. (ARO) declared that Julian R. Geiger has returned to the company as the Chief Executive Officer (CEO). Alongside, he will continue serving as one of the directors on the board.
Also, management announced that Thomas P. Johnson, will discontinue his role as CEO and director. However, Johnson agreed to be available for Aeropostale in order to enable the company to execute a hassle free transition. Management is impressed with his services as the CEO as he led the company to become fashion-oriented and also enhanced the company’s connection with customers.
Management is looking forward to Geiger as the CEO again, as he proved to be an able leader in his previous tenure. With his knowledge of fashion and understanding of the mechanisms in the retail market, he looks to drive the company’s growth by improving its sales network and profitability.
Concurrent to this announcement, the company posted its sales data and updated its outlook for second-quarter fiscal 2014. Aeropostale’s net sales declined 13% to $396.2 million during the second quarter with comparable store sales (comps), including e-commerce sales, plunging 13% year over year.
Moreover, the company updated its operating loss guidance for the quarter, as it now envisions operating loss to range from 42 – 45 cents per share, compared to 55 – 61 cents projected earlier. This excludes various one-time charges and any impact of the company’s deal with Sycamore Partners and its affiliates.
The current Zacks Consensus Estimate for the same is pegged at 59 cents a share and is likely to witness an upward revision. The rest is to be seen when the company posts its second-quarter fiscal 2014 results, which is slated to release on Aug 21, 2014.
Aeropostale currently carries a Zacks Rank #3 (Hold). However, other better-ranked stocks in the same industry include Citi Trends, Inc. (CTRN), The Men's Wearhouse, Inc. (MW) and Zumiez, Inc. (ZUMZ), each carrying a Zacks Rank #1 (Strong Buy).
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