AEROPOSTALE $10.08 - New York symbol ARO

strong>AEROPOSTALE $10.08 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646- 485-5410; www.aeropostale.com; Shares outstanding: 78.5 million; Market cap: $798.2 million; No dividends paid) reported sales of $454.0 million in the three months ended August 3, 2013. That was down 6.4% from $485.3 million a year earlier. Same-store sales declined 15%.

The slow U.S. economy has increased the unemployment rate among teens, which has hurt sales at most teen-focused retailers. Aeropostale lost $0.34 a share in the latest quarter, compared to nil per share a year earlier.

The company now has a new product development team in place, which should let it better react to changes in teenage fashion trends. Aeropostale will likely be able to repeat its past success at attracting customers, but its sales may remain weak in the near term.

Aeropostale is still a hold.

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