Aeropostale reports Dec SSS of +0.5%, vs Briefing consensus of +4.8% (ARO)
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Analyst Jeffrey P Klinefelter of Piper Jaffray steady on Aeropostale (ARO.NYS), while reducing his estimates for the company. The target price has been reduced from $35 to $30.
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Aeropostale (ARO)
opinion @ Harris Nesbitt weakens . Harris Nesbitt downgrades ARO, they believe the co's sluggish Dec comp-store performance may indicate that 1) the customer is no longer satisfied with the price-value relationship that ARO delivers; 2) ARO may be losing ground in the women's category; 3) they anticipate increased competition from too many teen retailers; 4) tougher comps loom ahead, particulary in the accessories category; and 5) collectively, these factors may lead to a gradual deterioration in price integrity and ultimately; margin erosion. Firm notes that the co may need to get more promotional into the start of Spring to fight back for its share of traffic. Firm lowers 4Q04 est to $0.61 from $0.65, and lowers its 2005 est to $1.78 from $1.85
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Aeropostale
opinion @ Prudential Equity Group weakens On concerns about what implications of Wal-Mart's November sales miss could mean for holiday selling and retail sector in general; cuts price target to $30 from $33
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Aeropostale-ARO analyst opinion @ SMMI weakens on soft Dec sales