AEROPOSTALE INC. $13.63 - New York symbol ARO

AEROPOSTALE INC. $13.63 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding: 81.3 million; Market cap: $1.1 billion; No dividends paid) is down almost 32% since early August after it lowered its forecast for its fiscal 2012 second quarter.

The company now expects to break even, down from its previous forecast of a profit of $0.03 to $0.05 a share. Consensus estimates were for a $0.06-a-share profit.

Aeropostale operates in a highly competitive market. That means it has to constantly refresh its clothing lines with popular new colours and styles. It should be able to repeat its past success at attracting customers, but sales may remain weak in the near term.

Aeropostale is now a hold.

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