Wall Street Watch: Why Aeropostale Is Flying Low This Season

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AeropostaleIt's not shaping up to be much of a holiday shopping season for Aeropostale (ARO).

The trendy apparel retailer posted better than expected quarterly results after Wednesday's market close, but any good feelings were stamped out when it offered up problematic guidance for the current quarter.

Aeropostale is looking for an adjusted profit to clock in between $0.36 a share and $0.41 a share for the holiday quarter. Analysts were expecting $0.54 a share on the bottom line.

The mall chain didn't offer up sales guidance, but it won't be as bad a miss as the company's new profit target suggests. The retailer's CEO is weary of the "highly promotional environment" in the industry, and that means that mall chains have had to discount aggressively to convert store traffic into ringing registers.

Margins have a cruel way of contracting in this climate, hence the sloppy outlook for the company's profitability.

It's not as if the back-to-school quarter was all that spectacular. Same-stores sales slipped 2 percent if you back out online sales, and that's after a 9 percent decline a year earlier. Put another way, the average store is selling 11 percent less than it was two years ago.

However, with margins getting pinched this critical holiday shopping season, it's easy to see why shares of Aeropostale are likely going to descend today.

Other Things Worth Watching

• PC makers better start thinking outside of the box before they start living in one. Credit rating agency Moody's lowered its credit profile for Hewlett-Packard (HPQ) on Wednesday afternoon. Last week's gargantuan charge in writing down last year's Autonomy acquisition isn't helping, but HP's real problem is that folks aren't buying desktops, laptops, and printers the way they used to.

• Disney (DIS) is giving its shareholders some more park-spending money. The family entertainment giant is boosting its annual dividend 25 percent to $0.75 a share. Disney is timing the distribution so that it's payable on Dec. 28, making it the latest company to schedule a dividend for late December to spare investors that tax rate hike on qualified dividends that will likely kick in next year. All of Disney's previous annual disbursements had been payable in January.

Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article, except for Disney. The Motley Fool owns shares of Walt Disney. Motley Fool newsletter services have recommended buying shares of Walt Disney.



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Tropsen

"big" Never heard of them?

November 30 2012 at 8:10 AM Report abuse rate up rate down Reply
Reverend

This Sermon is Titled:
Lightning Control and Storage Device Technology
By Reverend JAA

We can dissipate lightning thru the ground Earth or skin of an aircraft so we know how much charge is available 2 b stored with each lightning strike.

Atlantis knew how 2 harness and down convert Energy from lightning strikes aNd and regulate it 2 drive cities as an example.

Using Earthen Rock 2 build the storage device resolved heating and size issues.
Where R the capacitors, cubes, structures 2 capture and store natures free charge 2day?
Once this was accomplished, tiny portable storage devices were manufactured and sold 2 the general public 4 use as batteries. Standard sizes developed with STANDARDS 4 plug in2 virtually anything 2 drive as needed such as a home or transportation. Much different than 2days fuel cells.

And which generation of Mankind ended with the sinking of the continent of Atlantis bcause Mankind started using the lightning storage technology 4 EVIL?

EVIL Man

We R the last generation in 2011, 201x, 201 as EVIL Man pushes forward with Satans accomplices such as Tester (D), NRA and reD pLague who MURDER Christs majestic wolves and animals bcause EVIL Man denies our wild animals the space they need on Earth, denies mankind encroachment and over population and uses sAtans weapons on Christs creations rather than Christs wisdom.

BLUE HOUSE
BLUE NATION

November 29 2012 at 11:12 AM Report abuse -1 rate up rate down Reply
1 reply to Reverend's comment
Henslayer49

Man does NOT deny "our" Wild Animals the space they need on earth. Our progress into their habitat is obviously unfortunate and Conservationists all over the U.S. and the World do much to save and even improve their habitat. Groups like Ducks Unlimited, National Wild Turkey Federation, Pheasants Unlimited, Rocky Mountain Elk Foundation. And many more. After reading your RANT, I'd like to know what YOU HAVE DONE TO HELP..? HOW MUCH HAVE YOU DONATED IN TIME OR MONEY TO HELP THEM... If my guess is right, I'd say nothing at all. People like you only want to blame others for what you think is going on. And that's well before you even consider doing any research. So GO AHEAD AND COMPLAIN... Just do it somewhere I can't hear you...

November 30 2012 at 2:34 PM Report abuse rate up rate down Reply
mike edwards

clinton did the math what a guy

November 29 2012 at 7:26 AM Report abuse rate up rate down Reply