Aeropostale explores a possible sale
March 18, 2016 10:54 AM
Aeropostale Inc. is exploring whether to put itself up for sale, the struggling mall-based retailer said during a conference call with analysts.
The news came as Aeropostale, No. 150 in the Internet Retailer 2015 Top 500 Guide, on Thursday reported a disappointing fourth quarter in which comparable sales, including e-commerce, fell 6.7%.
Unlike many other mall-based retailers, e-commerce failed to bolster the retailer’s revenue. The retailer says its physical stores outperformed its online store during the holidays, continuing a trend Aeropostale first reported during the back-to-school season. The company did not report is online sales for the quarter or its full fiscal year.
The retailer says it is working with Stifel Financial Corp. to explore “strategic alternatives,” such as a corporate restructuring or sale.
Aeropostale has a limited supply of some merchandise due to a dispute with one of its vendors, MGF Sourcing US, over its sourcing agreement. The retailer says it is “working aggressively to find creative solutions to resolve the dispute,” including finding alternative sourcing arrangements, but the issue could dent the retailer’s bottom line.
For the fiscal fourth quarter ended Jan. 30, Aeropostale reported:
- Total sales decreased 16.1% to $498.0 million from $593.8 million.
- Comparable-store sales declined 6.7%.
- Net loss was $21.7 million compared to a $13.5 million loss.
For the full fiscal year:
- Total sales decreased 18.1% to $1.507 billion from $1.839 billion.
- Net loss was $136.9 million compared with $206.5 net loss.