Aeropostale (ARO $12.44 -1.22) reported second quarter EPS of $0.00, in-line with the Capital IQ Consensus Estimate of $0.00. Revenues rose 3.6% year over year to $485 million versus the $488.65 million consensus. Comparables were flat. The company preannounced these results, which were below consensus, on Aug 02. Management said, "While we were encouraged by the customer response to our fashion offering, we were disappointed by our overall financial performance for the second quarter. Our core basics business experienced significant pricing pressure due to the highly promotional and competitive retail landscape. As a result, we promoted these businesses more aggressively than initially expected to end the quarter with inventories inline with our plan."
The company issued downside guidance for the third quarter, seeing EPS of $0.25-0.30 versus a $0.39 Capital IQ Consensus Estimate.






