American teen apparel retailer Aeropostale is set to bring in another round of closures, closing at least 75 stores in the current quarter, in the wake of eighth straight quarterly loss.
With this, Aeropostale will have closed a total of about 120 stores this year in the US and Canada alone, which is way more than its estimation of 40 to 50 closures.
The retailer is also contemplating closure of another 50 to 75 standalone stores in the next financial year and 126 mall-based P.S. from Aeropostale stores by the end of January.
Targeted at teens, Aeropostale is facing stiff competition from fast-fashion brands such as H&M, Forever 21 and Inditex’s Zara. The retailer has failed to keep pace with changing trends and has been losing market share, hurt by higher discounts and falling demand.
Aeropostale posted fall of 11% in same-store sales in the third quarter, the ninth quarter in a row. Overall sales declined in percentage terms over Thanksgiving and the Black Friday weekend, in contrast with November’s low single-digit percentage increase.
Its net loss was $52.3m in the third quarter ended November 1, from $25.6m a year earlier, indicating a huge wide, while revenue fell to $452.9m from $514.9m a year ago.
In its earning call, the company forecasted a bigger-than-expected fourth-quarter loss.