Aeropostale, Inc., a teen apparel retailer posted its 8-straight quarterly loss that was hurt by falling demand and higher discounts. It said it would shut down nearly 75 stores during the current quarter.
Aeropostale also expects a higher-than-expected loss for the fourth quarter as its shares were down by 9% after market.
North American traditional retailers have been pushed to offer higher discounts in order to fight off extreme competition, while trying to regain customers who have switched to online shopping.
The closure of 75 stores will total to 120 store closures in 2014 within the United States and Canada, well ahead of the 40 -50 closure expectations during the year.
The company is also considering another closure of 50 to 70 stores in 2015, including 126 mall-based stores towards the end of January. It is continually struggling in keeping pace with the changing trends as well as in attracting the company’s target teenage market.
Same-store sales dropped 11% during the third quarter, which has been the 9th quarter with declining results. The drop was primarily hurt by the mid-teen sales percentage over the Black Friday and Thanksgiving.
The company’s net loss was at 52.3 million dollars or 66 cents a share during the third quarter ended on November 21. Company revenue dropped to 452.9 million dollars compared to the 514.9 million dollars last year. Stock also dropped about 65% this year.