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Aeropostale shrinks net loss in Q1 amid cost reductions; sales decline 19%


New York — Aeropostale Inc. managed to shrink its net loss in the first quarter of fiscal 2015, even as sales declined. The mall-based specialty retailer reported a net loss of $45.27 million, down from $76.78 million, amid reductions in selling, general and administrative expenses (SG&A) and restructuring charges helped cut net loss.

Net sales dropped 19% to $318.6 million from $395.9 million. Same-store sales, including e-commerce, fell 11%.

“As we anticipated, the first quarter of 2015 represented a period of transition for us,” said Julian R. Geiger, CEO. “We worked our way through a number of issues, including a merchandise assortment that was not consistent with our future direction, unseasonably cool weather, and the West Coast port slowdown. However, the performance of our women's division exceeded our expectations, and we were encouraged by the demand we were able to create through certain key items and promotions."

Looking ahead, Geiger emphasized that the back to school period represents the time when all of the strategies the chan has instituted over the last nine months should come to fruition.

“To prepare for this key selling season, we are focused on optimizing the quantity and composition of our merchandise to ensure a successful Back to School launch,” he said. “We are enthusiastic about seeing the results that this key period will bring.
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