Posted on Friday, May 20th, 2011 at 6:33 pm.
Clothing retailer Aeropostale Inc. forecast second-quarter earnings this week that are far below analysts predictions.
For the second quarter, the company expects to ear 11-16 cents per share, compared with analysts’ predictions of 27 cents a share. Shares of the company were down 11 percent at $18.90 after the bell Thursday. The retailer is struggling with rising cotton costs, big discounts, and competition.
Aeropostale Chief Executive Thomas Johnson issued a statement saying: “Our outlook for the second quarter reflects our plans to aggressively clear through spring inventories to position ourselves appropriately for the important back to school selling season.”
Abercrombie, one of Aeropostale’s main competitors in the teen clothing industry, topped market estimates as demand in both domestic and international markets rose.
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