Aeropostale (ARO) Breaks $40

Shares of teen retailer, Aeropostale (ARO), recently broke though $40 a share. The turnaround has been remarkable. In December, the stock was as low as $12.52 a share.

Last week, Aeropostale very strong earnings:

Profit for the quarter ended Aug. 1 climbed to $38.6 million, or 57 cents per share, from $21.1 million, or 31 cents per share, last year.

Revenue grew 20 percent to $453 million from $377.1 million.

Analysts polled by Thomson Reuters, on average, predicted earnings per share of 56 cents per share and revenue of $451.9 million.

Sales in stores open at least one year, a key retail metric known as same-store sales, rose 12 percent during the quarter.

For the third quarter, Aeropostale expects earnings between 76 cents and 78 cents per share, up from 63 cents per share a year ago. Analysts expect earnings of 76 cents per share, on average.

The stock continues to be a very good buy.

More Louis Navellier

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