NEW YORK, United States — Aeropostale Inc., the teen-apparel chain working to turn around its falling sales, plans to review strategic alternatives for the business after reporting a wider fourth-quarter loss.
The net loss expanded to $21.7 million, or 27 cents a share, from $13.5 million, or 17 cents, a year earlier, the New York-based company said in a statement Thursday. Excluding some items, the loss was 14 cents a share in the period through Jan. 30. Analysts estimated 13 cents, on average.
Aeropostale is now looking at a potential sale or restructuring after struggling to win back teen customers, who are increasingly buying clothes online instead of at the mall. While the retailer announced a cost-cutting plan in January, and is working with the New York Stock Exchange to avoid being delisted. Meanwhile, private equity firm Sycamore Partners, once seen as the company’s savior, has distanced itself from the struggling merchant.
The stock fell 40 percent to 29 cents a share at 4:26 p.m. in late trading in New York, after the results were released. Aeropostale already had plunged 84 percent in the 12 months through Thursday’s close.
By Lindsey Rupp; editors: Nick Turner and Kevin Orland.