How Did Aeropostale’s Revenues And Losses Decline In 2015?
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.
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Notes:
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 content@trefis.com
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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