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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 2.89
ARO's Cash to Debt is ranked higher than
71% of the 1126 Companies
in the Global Apparel Stores industry.

( Industry Median: 2.13 vs. ARO: 2.89 )
ARO' s 10-Year Cash to Debt Range
Min: 0.52   Max: No Debt
Current: 2.89

Equity to Asset 0.39
ARO's Equity to Asset is ranked higher than
58% of the 1117 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.50 vs. ARO: 0.39 )
ARO' s 10-Year Equity to Asset Range
Min: 0.38   Max: 0.61
Current: 0.39

0.38
0.61
Interest Coverage No Debt
ARO's Interest Coverage is ranked higher than
99% of the 736 Companies
in the Global Apparel Stores industry.

( Industry Median: 35.22 vs. ARO: No Debt )
ARO' s 10-Year Interest Coverage Range
Min: 11.76   Max: 9999.99
Current: No Debt

11.76
9999.99
F-Score: 2
Z-Score: 2.86
M-Score: -3.83
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) -8.86
ARO's Operating margin (%) is ranked lower than
56% of the 1081 Companies
in the Global Apparel Stores industry.

( Industry Median: 5.46 vs. ARO: -8.86 )
ARO' s 10-Year Operating margin (%) Range
Min: -8.86   Max: 17.16
Current: -8.86

-8.86
17.16
Net-margin (%) -6.78
ARO's Net-margin (%) is ranked lower than
56% of the 1081 Companies
in the Global Apparel Stores industry.

( Industry Median: 3.54 vs. ARO: -6.78 )
ARO' s 10-Year Net-margin (%) Range
Min: -6.78   Max: 10.29
Current: -6.78

-6.78
10.29
ROE (%) -50.53
ARO's ROE (%) is ranked lower than
58% of the 1063 Companies
in the Global Apparel Stores industry.

( Industry Median: 9.36 vs. ARO: -50.53 )
ARO' s 10-Year ROE (%) Range
Min: -50.53   Max: 65.49
Current: -50.53

-50.53
65.49
ROA (%) -21.90
ARO's ROA (%) is ranked lower than
58% of the 1079 Companies
in the Global Apparel Stores industry.

( Industry Median: 4.38 vs. ARO: -21.90 )
ARO' s 10-Year ROA (%) Range
Min: -21.9   Max: 29.92
Current: -21.9

-21.9
29.92
ROC (Joel Greenblatt) (%) -69.85
ARO's ROC (Joel Greenblatt) (%) is ranked lower than
58% of the 1078 Companies
in the Global Apparel Stores industry.

( Industry Median: 20.96 vs. ARO: -69.85 )
ARO' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -69.85   Max: 152.13
Current: -69.85

-69.85
152.13
Revenue Growth (%) 1.00
ARO's Revenue Growth (%) is ranked higher than
61% of the 982 Companies
in the Global Apparel Stores industry.

( Industry Median: 5.30 vs. ARO: 1.00 )
ARO' s 10-Year Revenue Growth (%) Range
Min: 1   Max: 43.2
Current: 1

1
43.2
» ARO's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

ARO Guru Trades in Q3 2013

Chuck Royce 11,400 sh (New)
Paul Tudor Jones 13,400 sh (New)
Steven Cohen 479,200 sh (unchged)
Jim Simons Sold Out
Richard Pzena 2,125,083 sh (-2.65%)
Manning & Napier Advisors, Inc 455,910 sh (-7.59%)
» More
Q4 2013

ARO Guru Trades in Q4 2013

Zeke Ashton 138,500 sh (New)
Chuck Royce 494,792 sh (+4240.28%)
Paul Tudor Jones 21,457 sh (+60.13%)
Manning & Napier Advisors, Inc 518,900 sh (+13.82%)
Richard Pzena 2,143,973 sh (+0.89%)
Steven Cohen 100,000 sh (unchged)
» More
Q1 2014

ARO Guru Trades in Q1 2014

Jim Simons 310,952 sh (New)
Chuck Royce 1,283,583 sh (+159.42%)
Richard Pzena Sold Out
Paul Tudor Jones Sold Out
Zeke Ashton Sold Out
Manning & Napier Advisors, Inc 39,730 sh (-92.34%)
» More
Q2 2014

ARO Guru Trades in Q2 2014

Manning & Napier Advisors, Inc Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with ARO

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Meridian Funds 2013-06-30 Reduce -26.16%0.08%$12.76 - $16.65 $ 3.18-78%457900
John Hussman 2013-03-31 Sold Out 1%$12.32 - $14.51 $ 3.18-76%0
Joel Greenblatt 2013-03-31 Sold Out 0.13%$12.32 - $14.51 $ 3.18-76%0
John Hussman 2012-12-31 Reduce -26.61%0.35%$11.95 - $14.45 $ 3.18-76%3000000
Joel Greenblatt 2012-12-31 Add 1189.91%0.12%$11.95 - $14.45 $ 3.18-76%167934
Meridian Funds 2012-12-31 Add 24.08%0.07%$11.95 - $14.45 $ 3.18-76%662100
Ray Dalio 2012-12-31 Sold Out 0.02%$11.95 - $14.45 $ 3.18-76%0
Lee Ainslie 2012-09-30 Sold Out 1.7%$12.14 - $20.39 $ 3.18-80%0
Meridian Funds 2012-09-30 New Buy0.26%$12.14 - $20.39 $ 3.18-80%533600
Ray Dalio 2012-09-30 New Buy0.02%$12.14 - $20.39 $ 3.18-80%97213
Joel Greenblatt 2012-09-30 New Buy0.01%$12.14 - $20.39 $ 3.18-80%13019
Lee Ainslie 2012-06-30 Add 35.71%0.45%$16.04 - $22.49 $ 3.18-84%6436112
Joel Greenblatt 2012-06-30 Sold Out 0.19%$16.04 - $22.49 $ 3.18-84%0
John Hussman 2012-06-30 Add 8.34%0.12%$16.04 - $22.49 $ 3.18-84%4402000
Ray Dalio 2012-06-30 Sold Out 0.05%$16.04 - $22.49 $ 3.18-84%0
Lee Ainslie 2012-03-31 Reduce -30.79%0.46%$14.91 - $21.93 $ 3.18-81%4742623
Joel Greenblatt 2012-03-31 Reduce -66.42%0.36%$14.91 - $21.93 $ 3.18-81%99258
Ray Dalio 2012-03-31 New Buy0.05%$14.91 - $21.93 $ 3.18-81%134608
Lee Ainslie 2011-12-31 New Buy1.5%$10.19 - $17.45 $ 3.18-79%6852869
Joel Greenblatt 2011-12-31 Reduce -31.77%0.24%$10.19 - $17.45 $ 3.18-79%295555
Ray Dalio 2011-12-31 Sold Out 0.06%$10.19 - $17.45 $ 3.18-79%0
Chuck Akre 2011-09-30 Sold Out 1.33%$9.31 - $18.56 $ 3.18-76%0
Ronald Muhlenkamp 2011-09-30 Sold Out 1.0353%$9.31 - $18.56 $ 3.18-76%0
Ray Dalio 2011-09-30 Add 335.84%0.04%$9.31 - $18.56 $ 3.18-76%343708
Chuck Akre 2011-06-30 Add 325%1.02%$17.15 - $26.26 $ 3.18-85%425000
Ronald Muhlenkamp 2011-06-30 Reduce -42.71%0.93%$17.15 - $26.26 $ 3.18-85%350934
Richard Perry 2011-06-30 Sold Out 0.8%$17.15 - $26.26 $ 3.18-85%0
Joel Greenblatt 2011-06-30 Add 360.07%0.79%$17.15 - $26.26 $ 3.18-85%411737
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Aeropostale Inc

Meridian Funds Comments on Aeropostale Inc - Jun 19, 2014

Aeropostale (ARO) is a retailer focused on the teenage demographic. The company suffered declining earnings in 2012 as struggling competitors cut prices and customer preference moved away from Aeropostale’s traditional strength in core basics towards higher fashion content. We believed that the Aeropostale’s brand was still relevant and that the company would benefit as improving inventory positions at competitors eased price competition and as the addition of a new head of design improved the company’s fashion offerings. This did not materialize, however, and the company continued to struggle. We exited the position at a loss to invest in other companies with greater growth potential.



From Meridian Funds's semi-annual report ended December 31, 2013.



Check out Meridian Funds latest stock trades

Top Ranked Articles about Aeropostale Inc

Meridian Funds Comments on Aeropostale Inc
Aeropostale (ARO) is a retailer focused on the teenage demographic. The company suffered declining earnings in 2012 as struggling competitors cut prices and customer preference moved away from Aeropostale’s traditional strength in core basics towards higher fashion content. We believed that the Aeropostale’s brand was still relevant and that the company would benefit as improving inventory positions at competitors eased price competition and as the addition of a new head of design improved the company’s fashion offerings. This did not materialize, however, and the company continued to struggle. We exited the position at a loss to invest in other companies with greater growth potential. Read more...
Aeropostale: Dark Matter in the Teenage Retail Space?
Company Read more...
Weekly Three-Year Low Highlights: AGI, ARO, WTSL, MRGE
According to GuruFocus list of three-year lows; Alamos Gold Inc, Aeropostale Inc, Wet Seal Inc, and Merge Healthcare Inc have all reached their three-year lows. Read more...

Ratios

vs
industry
vs
history
P/B 1.20
ARO's P/B is ranked higher than
75% of the 1171 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.90 vs. ARO: 1.20 )
ARO' s 10-Year P/B Range
Min: 1.2   Max: 10.59
Current: 1.2

1.2
10.59
P/S 0.10
ARO's P/S is ranked higher than
95% of the 1171 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.80 vs. ARO: 0.10 )
ARO' s 10-Year P/S Range
Min: 0.1   Max: 2.3
Current: 0.1

0.1
2.3
EV-to-EBIT -0.94
ARO's EV-to-EBIT is ranked lower than
59% of the 1171 Companies
in the Global Apparel Stores industry.

( Industry Median: 16.27 vs. ARO: -0.94 )
ARO' s 10-Year EV-to-EBIT Range
Min: 2.6   Max: 50.2
Current: -0.94

2.6
50.2
PEG 0.90
ARO's PEG is ranked higher than
89% of the 1171 Companies
in the Global Apparel Stores industry.

( Industry Median: 6.75 vs. ARO: 0.90 )
ARO' s 10-Year PEG Range
Min: 0.17   Max: 2.49
Current: 0.9

0.17
2.49
Shiller P/E 3.50
ARO's Shiller P/E is ranked higher than
99% of the 1171 Companies
in the Global Apparel Stores industry.

( Industry Median: 9999.00 vs. ARO: 3.50 )
ARO' s 10-Year Shiller P/E Range
Min: 3.5   Max: 32.02
Current: 3.5

3.5
32.02
Current Ratio 1.38
ARO's Current Ratio is ranked higher than
64% of the 1120 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.61 vs. ARO: 1.38 )
ARO' s 10-Year Current Ratio Range
Min: 1.38   Max: 3.06
Current: 1.38

1.38
3.06
Quick Ratio 0.58
ARO's Quick Ratio is ranked higher than
58% of the 1120 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.87 vs. ARO: 0.58 )
ARO' s 10-Year Quick Ratio Range
Min: 0.38   Max: 2.11
Current: 0.58

0.38
2.11

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.40
ARO's Price/Tangible Book is ranked higher than
77% of the 1171 Companies
in the Global Apparel Stores industry.

( Industry Median: 2.81 vs. ARO: 1.40 )
ARO' s 10-Year Price/Tangible Book Range
Min: 2.17   Max: 9.63
Current: 1.4

2.17
9.63
Price/DCF (Projected) 0.20
ARO's Price/DCF (Projected) is ranked higher than
100% of the 1170 Companies
in the Global Apparel Stores industry.

( Industry Median: 5.19 vs. ARO: 0.20 )
ARO' s 10-Year Price/DCF (Projected) Range
Min: 0.36   Max: 2.73
Current: 0.2

0.36
2.73
Price/Median PS Value 0.10
ARO's Price/Median PS Value is ranked higher than
99% of the 1171 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.08 vs. ARO: 0.10 )
ARO' s 10-Year Price/Median PS Value Range
Min: 0.17   Max: 1.82
Current: 0.1

0.17
1.82
Earnings Yield (Greenblatt) 11.80
ARO's Earnings Yield (Greenblatt) is ranked higher than
83% of the 1029 Companies
in the Global Apparel Stores industry.

( Industry Median: 7.30 vs. ARO: 11.80 )
ARO' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2   Max: 38.6
Current: 11.8

2
38.6
Forward Rate of Return (Yacktman) 32.86
ARO's Forward Rate of Return (Yacktman) is ranked higher than
95% of the 839 Companies
in the Global Apparel Stores industry.

( Industry Median: 8.99 vs. ARO: 32.86 )
ARO' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -4.8   Max: 44.8
Current: 32.86

-4.8
44.8

Business Description

Industry: Retail - Apparel & Specialty » Apparel Stores
Compare:IDEXY, TJX, FRCOF, ROST, SSI » details
Traded in other countries:AO5.Germany
Aeropostale, Inc., a Delaware corporation, originally incorporated as MSS-Delaware, Inc. on September 1, 1995 and later changed its name to Aéropostale, Inc. on February 1, 2000. It is a mall-based specialty retailer of casual apparel and accessories. The Company designs, markets and sells its own brand of merchandise principally targeting 14 to 17 year-old young women and young men. It also sells Aéropostale merchandise through its e-commerce website. As of February 2, 2013, it operated 984 Aéropostale stores, consisting of 906 stores in all 50states and Puerto Rico, 78 stores in Canada, as well as 100 P.S. from Aéropostale stores in 20 states. The Company's Aéropostale concept provides the customer with a focused selection of high-quality, active-oriented, fashion and fashion basic merchandise at compelling values. It maintains control of its proprietary brands by designing and sourcing all of its merchandise. It locates its stores mainly in shopping malls, outlet centers and, to a much lesser degree, lifestyle and off-mall shopping centers, all located in geographic areas with the highest possible concentrations of its target customers. It locates its stores in mall locations near popular teen gathering spots, such as food courts and other teen-oriented retailers. The Company's stores average approximately 3,700 square feet. It designs its stores in an effort to create an energetic shopping environment, featuring powerful in-store promotional signage, creative visuals and popular music. It owns, through its wholly owned subsidiary, Aéropostale West, Inc., a Delaware corporation, federal trademark registrations in the U.S. Patent and Trademark Office for its principal marks AÉROPOSTALE, AÉRO, 87, P.S. FROM AÉROPOSTALE, and other related marks for clothing, a variety of accessories, including sunglasses, belts, socks and hats, and as a service mark for retail clothing stores, as well as state registrations for these marks. It competes with a wide variety of retailers including other specialty stores, department stores, mail order retailers and mass merchandisers. The Company's Aéropostale brand competes mainly with other teen apparel retailers including, but not limited to, Abercrombie & Fitch, American Eagle Outfitters, Hollister, Old Navy, and Pacific Sunwear.
» More Articles for ARO

Headlines

Articles On GuruFocus.com
Is Abercrombie & Fitch the Best Teen Retail Stock? Jul 22 2014 
4 Tips For Investors To Learn More About Private Equity Jun 30 2014 
Meridian Funds Comments on Aeropostale Inc Jun 19 2014 
ANN Is a Good Buy in a Difficult Retail Environment Apr 30 2014 
Investing in These Retailers Is Like Playing with Fire Apr 23 2014 
Abercrombie & Fitch: No Profits, Just Losses Mar 13 2014 
Aeropostale: Dark Matter in the Teenage Retail Space? Feb 27 2014 
Why I Love Amazon.com but Won’t Buy Its Stock Feb 12 2014 
Apparel Retailer Pushed Down by Teen Fickle Trends and Pricing Pressure Feb 10 2014 
An Eagle Soaring Against the Draft Jan 28 2014 


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