Aéropostale reports 18 percent decline in annual net sales

Aéropostale net sales decreased 16.1 percent to 498 million dollars for the fourth quarter, from 593.8 million dollars in the year ago period. Comparable sales, including the e-commerce channel decreased 6.7 percent. Net sales for fiscal 2015 decreased 18 percent to 1.507 billion dollars, from 1.839 billion dollars in the year ago period. Comparable sales including the e-commerce channel, decreased 8.6 percent compared to an 11.1 percent decrease for the corresponding period of the prior year.

Commenting on the results, Julian R. Geiger, Chief Executive Officer, said, "Our fourth quarter 2015 adjusted operating loss of 7.6 million dollars was within our previously issued guidance. Additionally, the initial reaction to both our spring product and our two-chain factory and mall strategy is very encouraging with comparable sales turning positive since our Factory Chain launch at the end of February."

Net loss widens

The company reported a net loss for the fourth quarter of 21.7 million dollars, or 0.27 dollar per diluted share compared to a net loss of 13.5 million dollars, or 0.17 dollar per diluted share last year. Excluding certain charges, the company reported an adjusted net loss of 10.8 million dollars, or 0.14 dollar per diluted share in the fourth quarter of fiscal 2015 compared to an adjusted net profit of 0.4 million dollars, or 0.01 dollar per diluted share in the fourth quarter of fiscal 2014.

The company reported a net loss for fiscal 2015 of 136.9 million dollars, or 1.72 dollars per diluted share. Excluding certain items, for fiscal 2015, the adjusted net loss was 124.3 million dollars, or 1.56 dollars per diluted share.

The company closed 13 Aéropostale stores during the quarter. For the fourth quarter, the Company invested 1.8 million dollars in planned capital expenditures.

First quarter guidance

For the first quarter of fiscal 2016, the company expects operating losses in the range of 24 million dollars to 29 million dollars, which translates to a net loss in the range of 0.35 dollar to 0.42 dollar per diluted share.