Aeropostale Earnings Preview: Likely Another Dismal Quarter

Earlier this year, the retailer reported a 9% decline in its comparable store sales (including e-commerce) for the two month period of November and December 2014, on top of 15% decline witnessed in the same period of 2013. We see no reason why the company would have performed any better in January, given that market conditions did not change much through the November-January quarter. Moreover, Aeropostale still lacks the fashion depth that U.S. buyers favor in the merchandise of its competitors.