Dallas, Texas 01/14/2014 (FINANCIALSTRENDS) – Aeropostale, Inc.(NYSE:ARO), given the strong fundamentals, is expected to see a turnaround of sorts in the new fiscal year. According to recent conference calls, the executives of the company have admitted to poor product range, in specific the snazzy t-shirts, which are to be removed and more evolved apparel –line to be soon available for the discerning teenagers and the 4 to 12 year olds.
Bethany Mota and PS spin-off expected
Aeropostale, Inc.(NYSE:ARO) has brought in a new line called the Bethany Mota Collection will appear sans the logo and the graphics. The sale of these new products was apparently on the higher side over Black Friday sales as well as the Bulldog Sale. More changes at Aeropostale would include the spinning-off of its kid’s apparel line – PS. The company feels, the brand has matured sufficiently, to ensure profitability in 2014.
Poised for Turnaround
Aeropostale, Inc.(NYSE:ARO), the youth apparel brand with high appeal in the US, has a market cap of $608.33million and share volume of 8,163,706, trading between 52-week low and 52-week high of $17.10 and $7.62 respectively. The business model the company operates is mall- based retailer position and is visible against such other brands as Amercian Eagle and Abercrombie.
Acquisitions are profitable
Aeropostale, Inc.(NYSE:ARO) currently caters to young and trendy 14 to 17 year olds, besides an apparel line for 4 to 12 year olds. The range of apparel which this 1980-founded brand offers are t-shirts with snazzy prints, tops, jeans, sweaters, and accessories. However, the snazzy-printed t-shirts are in the previous season, apparently on the way out as the company looks to recoup and reposition itself in a more elegant branded-apparel store. Additionally, the takeover of Gojane.com in late 2012, has further bolstered revenue in 2013 and allowed a larger online footprint for this youth-apparel mall-based retailer.