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.