Operating loss for the three months period to January 30, 2016 climbed higher at Aéropostale, Inc., a mall based specialty retailer of casual apparel for young women and men.
As per an Aeropostale press release, for the fourth quarter of fiscal 2016, operating loss rose to $18.5 million versus $14.0 million in the fourth quarter of fiscal 2015.Operating loss for the three months period to January 30, 2016 climbed higher at Aéropostale, Inc., a mall based specialty retailer of casual apparel #
However, excluding other charges, the retailer reported adjusted operating loss of $7.6 million compared to an adjusted operating profit of $3.7 million in the prior fiscal's fourth quarter.
These charges include; an after-tax charge of $8.3 million, or $0.10 per diluted share, resulting from store asset impairment charges.
An after-tax charge of $1.5 million, or $0.02 per diluted share, resulting from the reversal of the CEO's stock options.
An after-tax charge of $1.4 million, or $0.02 per diluted share, resulting from severance costs; and other after-tax charges of $0.3 million, or $0.00 per diluted share.
“All these were partially offset by an after-tax benefit of $0.8 million, or $0.01 per diluted share, related to the reversal of a portion of the GoJane contingent consideration liability,” the company observed.
For the reporting quarter, net sales decreased 16.1 per cent to $498.0 million, from $593.8 million in the previous fiscal's fourth quarter.
Comparable sales, including the e-commerce channel, for the fourth quarter declined 6.7 per cent compared to the fourth quarter of fiscal 2015.
For the quarter under review, the company posted a net loss of $21.7 million, or $0.27 per diluted share compared to a net loss of $13.5 million, or $0.17 per diluted share last year.
Excluding the charges, Aeropostale recorded an adjusted net loss of $10.8 million, or $0.14 per diluted as against an adjusted net profit of $0.4 million, or $0.01 per diluted share in the earlier fiscal's same quarter.
CEO Julian Geiger said, "Our fourth quarter of fiscal 2016 adjusted operating loss of $7.6 million was within our previously issued guidance.”
“Additionally, the initial reaction to both our Spring product and our two-chain Factory and mall strategy is very encouraging with comparable sales turning positive since our Factory Chain launch at the end of February," he added
The company ended the quarter with cash and cash equivalents of $65.1 million, while the current portion of long-term debt was $5.0 million and non-current long-term debt was $138.0 million.
Additionally, there were no borrowings outstanding under the revolving credit facility and the company was in compliance with all financial covenants associated with the revolving credit facility and loan agreement.
The retailer closed 13 Aéropostale stores during the quarter and in the reporting period, invested $1.8 million in planned capital expenditures. (AR)
Fibre2Fashion News Desk – India
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