A E Ropostale Plunged After 18%, Loss Exceeding Expectations

In the first quarter of May 2nd, net profit of American Eagle Outfitters Inc. amounted to US $29 million 55 thousand, 6.5 times the US $3 million 866 thousand in the same period last year, and the earnings per share rose sharply from US $0.02 to US $0.15, which is better than the 0.12 US dollars predicted by the market.

Gross margin increased by 260 basis points to 37.5%, compared to 34.9% last year.

Flagship brand American Eagle Outfitters sales in the same store achieved a strong growth of 7%, compared with a 11% decline in the same period last year, aerie

Sales in the same store also increased by 12%, pushing the group's total store sales up 7%, far exceeding the market expectation of 5.4%.

Total revenue rose 8.3% to $699 million 500 thousand over the same period, and the market forecast was 692 million 300 thousand US dollars and 646 million 100 thousand US dollars last year.

Abercrombie & Fitch Co. (NYSE:ANF), which is the three largest apparel retailer for young people, will release its first quarter results next week.

By the end of the season,

Inc. has $76 million in cash and cash equivalents and $1.411 in long-term debt.

A e ropostale Inc. (NYSE:ARO) closed at $2.59 on Thursday, up 2.78% from a full day, and the stock has fallen 41.8% in the past 12 months.

The three largest in the US

The weakest A e ropostale Inc. (NYSE:ARO) in the retailer suffered a sustained loss, which recorded a net loss of $45 million 300 thousand or a loss of $0.57 per share in the first quarter of May 2nd, although it narrowed sharply compared with a net loss of $76 million 800 thousand and a loss of 0.98 per share in the same period last year. However, the group's expectations for the current two quarter exceeded the market expectations. A ropostale Inc. (NYSE:ARO) fell 18.11% to 2.12 dollars on Thursday, leaving only 200 million dollars in market value. Analysts expect the brand to disappear before the end of 2015.

The Group expects a 0.52-0.60 loss of $0.37 per share in the two quarter, much higher than the market forecast of $0.37.

The two quarter ended in early August included the beginning of the homecoming shopping season. A E. ropostale Inc. CEO Julian Geiger in March at the 2014 financial year performance conference has expressed expectations that the group will improve in the second half of this year, especially in the school shopping season.

In the first quarter, group net sales fell 19.5% to 318 million 600 thousand US dollars compared to the same period last year, 395 million 900 thousand US dollars in the same period last year, and the same store sales plunged 11%, compared with a 13% decline in the same period last year.

Gross profit margin was 18.6%, up 80 basis points from 17.8% in the same period last year.

Compared to the 3 consecutive years of A e ropostale Inc. sales, it has not been able to reverse the decline in the past two years. One of its competitors, American Eagle Outfitters Inc. NYSE:AEO (NYSE:AEO), has recovered in the first quarter. Its brand name has been rebounded after two consecutive years of sales setback, thanks to the design of discount reduction, inventory control and de logo, and has recorded a growth again, pushing the group to achieve super market expected profits in the first quarter.