Aeropostale closing 75 stores as Q3 loss widens and same-store sales fall 11%

New York - On the heels of its eight straight quarterly loss, Aeropostale said it would close about 75 stores in the current quarter, and could close 50 to 75 more namesake locations in 2015, and 126 P.S. from Aeropostale stores by the end of January.



The struggling teen retailer reported a net loss of $52.3 million in the third quarter ended Nov. 1, up from $25.6 million, in the year ago period. It also forecast a bigger-than-expected fourth-quarter loss.



Revenue fell to $452.9 million from $514.9 million a year ago. Same-store sales plunged 11%, the ninth quarter in a row that they have fell.



Similar to some other teen retailers, Aeropostale has found itself losing out to such fast-fashion leaders as Forever 21 and H&M, whose on-trend styles and bargain prices have struck a resonate note with young shoppers.



On a positive note, Aeropostale did meet analyst expectations for net loss and beat revenue estimates. Julian R. Geiger, CEO, expressed a hopeful outlook. After-tax charges in areas including store asset impairments, lease buyouts, consulting, severance and stock-based compensation contributed to the net loss.



"During my first 100 days back at Aeropostale, I have developed and begun executing my vision of, and game plan for, positioning and returning the company to profitability,” said Geiger. “In that time, we have also continued to support and accelerate a variety of well-conceived and executed merchandising, marketing, operational and financial initiatives that started before my arrival. We have made small but measureable steps in the right direction, which led to third quarter results that were in line with our guidance. We ended the quarter with inventories well-controlled, positioning us appropriately as we progress through the fourth quarter."



In the fourth quarter, Aeropostale expects a net loss between 37-44 cents per share, more than the previously forecast 36 cents per share.