WASHINGTON (dpa-AFX) - Aeropostale Inc. (ARO), the struggling teen-apparel retailer, Monday revealed the appointment of its former Chief Executive Officer Julian Geiger to once again to lead the company. Aeropostale also raised its outlook for the second quarter. Shares of the company surged 10 percent in the after-hours trade, following the news.
Aeropostale Board and current CEO Thomas Johnson agreed to step down in a mutual agreement.
'My decision to return to Aeropostale to be its Chief Executive Officer is one that was easy to make,' said Geiger. 'The opportunity for sales and profit growth; the ability to reinforce the Company's special culture; and the chance to work closely with, and influence, the management team and the field organization combine to create a compelling and dynamic challenge.'
The CEO appointment comes at a time when Aeropostale has been struggling and has closed under-performing stores in an attempt to revive the company. Aeropostale is also under pressure from certain quarters to sell itself in order to enhance shareholder value.
New York-based Aeropostale said its second-quarter sales decreased 13 percent to $396.2 million from $454.0 million a year ago. Analysts polled by Thomson Reuters had a consensus revenue estimate of $395.44 million for the quarter.
Comparable sales, including the e-commerce channel, for the second quarter decreased 13 percent compared to last year.
Looking forward to the second quarter, the company expects net loss of $0.80 to $0.83 per share, which includes charges of about $29.0 to $31.0 million.
The company now expects second-quarter operating loss of $0.42 to $0.45 per share, better than its previous estimate of a loss of $0.55 to $0.61 per share. Analysts currently expect second-quarter loss of $0.58 per share.
ARO closed Monday's trading at $3.24, up $0.07 or 2.21%, on the NYSE. The stock further gained $0.33 or 10.19% in after-hours trade.
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