Dallas, Texas 04/09/2014 (FINANCIALSTRENDS) – Aeropostale Inc (NYSE:ARO) the retailer showcasing lifestyle products at malls around the country, has developed in the past few quarters an overall drop in pace and performance, which has finally led to analysts rating the stock.
The stock has been downgraded from Neutral to Overview by analysts, with PiperJaffray being the latest to not only downgrade but lower the price target from the earlier $15 to $13. The stock has been reporting downward movement of 2.2%, finally closing the end of trading session at $5.
Other analysts too are covering this stock and attempting to downgrade the stock to Sell. The concerns for this stock, which these analysts are currently worried about are- drop in net income, as well as very low equity return. Besides, the company has also reported poor profit margins.
Aeropostale Inc. (NYSE:ARO) has also recognized that the performance in the past is itself feeble and the earnings per share is poor as well.
In the first quarter, the company showed net income was much below and has reported underperformed, in comparison to the other companies in the S&P 500 as well as the Specialty Retail Industry.
Aeropostale Inc. (NYSE:ARO) has reported Return On Equity which is much lesser than what it earned in the same quarter of the previous year. The major weakness in this retail industry is that it is much lesser than the Specialty Retail Industry index.
Aeropostale Inc. (NYSE:ARO) has also indicated that the gross profit margin is much lower at 12.97%, over previous quarter. The net profit margin is negative at 10.49%, which is below that of what the industry average shows.
Aeropostale Inc. (NYSE:ARO)has also reported fluctuations in the past year. It has been tumbling by over 60.57%, which was much lesser than the S&P 500.
Aeropostale Inc. (NYSE:ARO) has been reporting continued decline in the earnings per share over the past quarter, in comparison to the same quarter of the previous year.