Mall-based apparel retailer, Aeropostale, Inc. (ARO) has licensed Sociedad Comercial Grupo Yes S.p.A. to launch Aeropostale and P.S. from Aeropostale brands in Chile.
Aeropostale intends to open standalone as well as department stores and multi brands outlets across Chile by 2015. The company’s first Aeropostale store will come in Parque Arauco in Santiago in Oct 2014, whereas P.S. from Aeropostale outlets will start coming up by early 2015.
Earlier in August, Aeropostale launched its P.S. from Aeropostale brand in Mexico, also through a licensing collaboration with local departmental store chain operator Distribuidora Liverpool, S.A. de C.V. The retailer further plans to expand its P.S. from Aeropostale brand in Mexico by introducing branded shop-in-shops in Liverpool department stores, apart from opening standalone outlets.
Aeropostale, along with its peers American Eagle Outfitters, Inc. (AEO) and Abercrombie & Fitch Co. (ANF), has been under tremendous pressure as the teen retail environment remains challenging. The company has posted losses for five straight quarters.
To battle dwindling revenues, the company has taken to international expansion in big way. In addition, the company re-instated its former CEO Julian. R. Geiger at the helm of affairs as he proved to be an able leader during his previous tenure. With his knowledge of fashion and understanding of retail market mechanisms, he is likely to drive the company towards growth by improving its sales network and profitability.
The company plans to remain focused on undertaking initiatives to transform and grow its brand. With sustained implementation of operational, marketing and merchandising strategies, coupled with its cost-curtailment program, Aeropostale is likely to improve in the long term.
Currently, Aeropostale is a Zacks Rank #3 (Hold) stock. A better-ranked stock in the same industry is Citi Trends, Inc. (CTRN), with a Zacks Rank #1 (Strong Buy).
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