Americans now say they approve of free trade by 64%-27%, a margin of better than two to one. That's up from 57%-37% early in Trump's presidency, and 51%-41% near the end of...Politicsread more
The yield on the benchmark 10-year Treasury note briefly fell below the 2-year rate on Wednesday, a phenomenon in the bond market known as yield curve inversion, which is...Marketsread more
The MacBook Pro recall and its subsequent ban from flights underscores the increasing brand risk from problems with lithium-ion batteries.Technologyread more
Experts say the timing of Amazon executives' contributions to Rep. David Cicilline likely reflect the company's heightened urgency over growing regulatory scrutiny.Technologyread more
CNBC combed through Wall Street research to see which stocks are still a buy after their earnings reports.Marketsread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
Coinbase security chief Philip Martin explains, "Possession of a key is possession of your currency. What that means is that you can't revoke a cryptocurrency key, if that key...Technologyread more
Fraud investigator Harry Markopolos' accusations extended beyond GE's management to actuaries, auditors and analysts who he claims overlooked billions in liabilities.Marketsread more
The Supreme Court could strike down the constitutionality of the Consumer Financial Protection Bureau, an agency Elizabeth Warren has likened to her child and which Justice...2020 Electionsread more
Bianco Research's James Bianco suggests Wall Street is desperately looking for a signal that a 50 basis point cut is coming next month.Trading Nationread more
The company's S-1 lays the groundwork for what is widely expected to be one of the largest initial public offerings of the year, second only to Uber's IPO in May. It's also...Technologyread more
On the surface, things were heading in the right direction for Aéropostale.
Since renaming former CEO Julian Geiger to the helm in August, shares of the teen retailer had risen 17 percent over the course of seven months. Then on Thursday, the purveyor of Ts and hoodies announced its first quarterly profit in two years.
Digging deeper into the earnings beat, however, tells another story. Although the retailer last year successfully cut $12 million in expenses, and plans to further prune its store base into a more productive fleet, sales continue to lag behind.
After preannouncing that comparable-store sales fell 9 percent in the fourth quarter, Aéropostale on Thursday issued a forecast for a larger-than-anticipated loss for the first quarter, sending its shares 16 percent lower, to $3.09 on Friday.
Among analysts' key concerns are merchandise that still isn't resonating with shoppers, inventory levels that have been trimmed to the point where growing sales will be difficult, and backlog at the West Coast ports that will likely result in late spring deliveries.
"We think it is unlikely Aéropostale can earn a profit again," Morgan Stanley analyst Kimberly Greenberger wrote in a note to investors on Thursday. "Management is hoping for a [second-half] top-line turnaround, but we remain skeptical Aéropostale can turn the tide after 10 consecutive quarters of negative same-store sales."
Along with bringing back Geiger, who led the company during its heyday in the late 1990s and early 2000s, the retailer has attempted to grow its emerging fashion brands, including YouTube star Bethany Mota's line. It's also working to remove the glut from its store footprint to cut costs, and will have closed more than 200 stores, or about 20 percent of its fleet, by the end of the year.
Despite these efforts, Aéropostale continues to be the laggard among the teen retailers known as the "Three A's," which include American Eagle and Abercrombie & Fitch. All three names are in the midst of reworking their businesses to regain the interest of middle- and high-school age shoppers, who traded in their logo Ts for trendier fast-fashion stores such as H&M.
Sales have begun to turn at American Eagle, which last week topped fourth-quarter consensus earnings estimates and posted flat same-store sales. And while sales trends remain weak at Abercombie, the company still managed a $1.15 per share profit in the most recent quarter.
"As far as 2015, we heard a lot of 'ifs' [from Aéropostale]—'if all things align properly,' 'if you get a higher [average unit retail],' 'if you have enough transactions' " Wells Fargo analyst Paul Lejuez wrote in a research note.
He added that with store traffic down and management planning to increase inventory levels in the second half, "We don't feel good about those 'ifs.' "