How Did Aeropostale’s Revenues And Losses Decline In 2015?

ARO: Aeropostale logo

Aeropostale’s revenue declined by 18% in 2015 mainly due to a decline in revenue per square feet (higher promotional activities) and a significant decrease in average store count, which can be attributed to aggressive consolidation of the P.S. from Aeropostale format. However, expenses including COGS and SG&A fell at a slightly faster rate mainly due to lower costs related to under-performing stores. ¬†Accordingly, the company’s operating losses shrank by $37 million.

ARO earnings.

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1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Aeropostale
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