ARO

Aeropostale Inc

Consumer


Presented:03/19/2015
Price:$3.02
Cap:$0.24B
Current Price:$0.15
Cap:$0.00B

Presented

Date03/19/2015
Price$3.02
Market Cap$0.24B
Ent Value$0.23B
P/E RatioN/A
Book Value$1.18
Div YieldN/A
Shares O/S79.12M
Ave Daily Vol2,390,000
Short Int15.16%

Current

Price$0.15
Market Cap$0.00B
Aéropostale, Inc., together with its subsidiaries, operates as a mall-based specialty retailer of casual apparel and accessories. It provides a collection of apparel, including graphic T-shirts, tops, bottoms, sweaters, jeans, outerwear, and accessories for 14 to 17 year-old young women and men. The company also offers casual clothing and accessories focusing on kids between the ages of 4 and 12. As of March 12, 2015, it operated 766 Aéropostale stores in 50 states and Puerto Rico, 61 Aéropostale stores in Canada, and 26 P.S. from Aéropostale stores in 12 states and Puerto Rico. In addition, Aéropostale, Inc. markets its products through its Websites, www.ps4u.com, and www.aeropostale.com, as well as its licensees operate 239 Aéropostale and P.S. from Aéropostale locations in the Middle East, Asia, Europe, and Latin America under various licensing agreements. The company also sells fashion footwear, contemporary apparel, and other accessories through GoJane.com. It has a strategic partnership with Sycamore Partners and MGF Sourcing. The company was formerly known as MSS-Delaware, Inc. and changed its name to Aéropostale, Inc. in February 2000. Aéropostale, Inc. was founded in 1987 and is headquartered in New York, New York.

Publicly traded companies mentioned herein: Aeropostale Inc (ARO)

Highlights

The presenter is long shares of Aeropostale (ARO), calling the brand “mismanaged” for the past four years, and has confidence in returning CEO Julian Geiger’s ability to significantly reduce selling, general, and administrative expenses and improve margins. He believes the company will hit guidance for the next few quarters, and has a chance to become profitable in Q3 2015, which would force investors to re-evaluate the business. If his thesis plays out, shares could be worth as much as $6.00 - $7.00 by the end of 2015.

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Idea Discussion

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