Aeropostale (NYSE:ARO)

CAPS Rating: 2 out of 5

The Company is a mall-based specialty retailer of casual apparel and accessories. The Company designs, markets and sells its own brand of merchandise principally targeting 11 to 18 year-old young women and young men.

Recs

3
Player Avatar Jeffrey2012 (< 20) Submitted: 8/19/2011 9:42:21 PM : Underperform Start Price: $12.83 ARO Score: +152.62

The company is currently fundamentally impaired. I should have known something was wrong when the female ceo had to leave. Then they embarked on a disastrous stock buy back at the high teens and combined with deteriorating same store sales, you get a crumbling stock. Terrible management and is great at destroying capital. Makes you wonder why a company who did so well during the recession decides to suddenly cancel same store statistics monthly.

Not to mention, anyone who believes they are a value candidate should just drop that pretense since their balance sheet is being shot up by horrible buy backs and dwindling earnings.

Member Avatar Gtrinvestor (99.73) Submitted: 5/23/2014 11:21:15 AM
Recs: 0

Prescient call. Also, SG&A continues to stay high, even on lower GM%, and capex stays high, even with lower operating cash flow.

With $2B in annual sales, someone should be able to do something with this brand (maybe Sears will buy them out)? I just can't make a call on this stock to put any real money into it one way or the other.

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