Potential Buyers for Aeropostale Inc (ARO) and Best-run Retailers at the Moment


Aeropostale Inc (NYSE:ARO) is a specialty retailer in casual accessories and apparels. This is a mall based company and targets the teens for their products. This Specialty retailer was found back in 1973 and following its IPO in 2002 had the best 8 years hitting double digit revenue growth consistently.

Since 2011 Aeropostale Inc (NYSE:ARO) had lost around 90% of its market value. Revenues reduced from $2.9 billion in 2011 to current value of $251 million. Stock price also dropped from $31.1 in 2011 to current value of $3.2. This huge turnaround since 2011 is mainly attributed to lackluster performance of the company. There are some speculations in the street that the company may even have to seek a buyout.


Jan Kniffen, the CEO of J Rogers Kniffen Worldwide, and Mary Epner, Retail Analysis principal, talked on CNBC about Aeropostale Inc (NYSE:ARO), who might buy them and currently the best run retailers.

Aeropostale Inc (NYSE:ARO) dropped 65% since beginning of the year and investors can buy the stock of this company much cheaper. Kniffen said that there are some interested parties who might plan to buy this specialty retailer. Some activity is happening in hedge funds which monitor retailers and he thinks that it might be on this company.

“But the point is, some of these guys have really struggled, so some of the people that we though nobody would ever want to own, I had Aeropostale sort in that category. Might want to be owned by some sort of private equity group or private equity buyer,” Kniffen shared his views.

Epner thinks that the retailers that are involved with mobile and digital apps and therefore are be able to connect closer to the targeted demographic groups. She considers that this way of connecting to customers is far different but effective from the way the malls connect with their customers.

She feels that the trend of business shipped away from malls to retailers is going to continue and the retailers who are doing well currently is going to get a lot of benefit from this. She pointed our few of the currently well run retailers.

“I think in terms of who is doing it well right now again its Macy’s, JC Penney and there are few other brands coming back that look good. Urban outfitters is looking good and is a favorite among teen,” Epner added.

Aeropostale Inc (NYSE:ARO) is under a lot of pressure right now with some of the investors like Crescendo Partners seeking buyout.

Disclosure: None