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August 19, 2014
11:53 EDTAEO, ANF, URBN, AROAeropostale soars as Geiger returns as CEO
Shares of teen apparel and accessory retailer Aeropostale (ARO) are soaring after the company announced that former Chief Executive Officer Julian Geiger is set to return to his previous position. The retailer also provided second quarter guidance. WHAT'S NEW: Aeropostale's former CEO, Julian Geiger, is taking over effective immediately, the company announced yesterday. Thomas Johnson is leaving the board of directors and will also step down from his role as CEO. Johnson plans to remain available to ensure a smooth transition, the company said. Geiger was chairman and CEO from 1998-2010, when he was replaced with Johnson, and was the CEO and president of Crumbs (CRMBQ) from 2011-2013. WHAT'S NOTABLE: For the second quarter, Aeropostale forecast adjusted EPS of (45c)-(42c), topping analysts' consensus of (58c). Previously, the retailer was anticipating a Q2 loss of (61c)-(55c). Aeropostale anticipates Q2 revenue of $396.2M, which is higher than analysts' $395.44M consensus. Comparable sales, including the e-commerce channel, for Q2 decreased 13% vs. last year. Aeropostale is set to report Q2 earnings on August 21. ANALYST REACTION: Wells Fargo analyst Paul Lejuez feels that the return of Geiger will not aid in the company's future improvement. He feels that Geiger knows Aeropostale better than anyone, but he does not know what he could do to change its current market position. Lejuez says that the retailer is struggling to reinvent itself as a clothing brand and growth potential is still limited. The analyst says that valuation risks include the retailer alienating its core customer even more, failing to attract new customers and that its systems infrastructure could be insufficient. The firm maintains a Market Perform rating on the stock. Piper Jaffrey analyst Stephanie Wissink says that her perspective remains unchanged following Aeropostale's latest announcements. She said that while some investors could view the return of Geiger as a positive move, he comes to the retailers in a different stage of his life. Wissink feels that Aeropostale's business is not decreasing, but its not increasing either. The firm maintains a price target of $4 and Neutral rating on the shares. PRICE ACTION: During late morning trading, shares of Aeropostale rose 78c or 24.07%, to $4.02. OTHERS TO WATCH: Aeropostale peers include Abercrombie & Fitch (ANF), American Eagle Outfitters (AEO) and Urban Outfitters (URBN).
News For ARO;ANF;AEO;URBN From The Last 14 Days
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February 11, 2016
09:03 EDTANFExpress, Abercrombie & Fitch spring outlook positive, says BMO Capital
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February 10, 2016
08:10 EDTURBNUrban Outfitters price target raised to $28 from $25 at SunTrust
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February 9, 2016
16:15 EDTURBNUrban Outfitters reports Q4 revenue $1.01B, consensus $1.02B
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