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what happened to aeropostale last year?
by：Chengyi
2020-06-09
There is no doubt that air pollution can be considered one of the biggest losers in the United States. S.
The clothing industry after the recession.
The retailer has struggled for stability since 2015 and is worse at the end of the year.
Its shares have fallen more than 90% over the past year and are trading at a historic low of $0. 26.
Unless Aeropostale adopts a reverse stock split to resume compliance with the New York stock exchange regulations, it may not stay in the public market for a long time.
However, this is not enough because the speed at which retailers burn money is worrying and it seems that there is still a long way to go before making profits.
To consolidate its bottom line, Aeropostale signed a brand licensing agreement for the sale of home textiles in October and signed a clothing licensing agreement for Ireland in November.
Earlier this year, the retailer also signed a similar license agreement in India and Indonesia, indicating the US struggle. S.
Bring the company to the unknown.
While exploring the licensing space seems to be an effective initiative, these transactions are not sufficient to address the core issues of Aeropostale, given that the costs involved will be minimal.
Our estimate for Aeroposatle is $2.
22, this means that the current market prices rose sharply.
However, we are updating our estimates.
On September, Aeropostale announced that it had received a listing compliance notice from the New York Stock Exchange, which required companies participating in the transaction to maintain a stock price of at least $1 to continue listing on the exchange.
The company said it was considering a reverse stock split in order to restore compliance.
While the reverse stock split does not help increase shareholder returns, it can ensure that retailers remain on the big board.
Due to its continued low performance and a clear disagreement between the top leadership, the company is unlikely to share any positive news in terms of operations.
So there seems to be very few triggers that can boost demand for its shares in the short term.
At this point, the reverse stock split seems to be the only way out, which basically means reducing the number of tradable shares.
Because if Aeropostale is delisted, it will be another curve of its downward spiral.
The company has already undertaken a significant amount of debt and contractual lease obligations.
However, there has been no update on this so far, indicating that management is hesitant.
On October, Aeropostale signed a brand licensing agreement with Himatsingka America to sell home textiles under its brand name.
Under these terms, Himatsingka will design and manufacture home textile products such as bedding and bath towels under the brand name of Aeropostale and distribute them to various wholesale channels and large boxes throughout North America
The first batch of Aeropostale home series is expected to land in the store in the backgroundto-
The school year next year.
The retailer believes it has enough brand awareness in the US. S.
Attract a wider range of customers with products other than casual clothing.
However, Aeropostale\'s name is no longer relevant to quality, which may give customers doubts about its branded home textile products.
While retailers expect the deal to be a new source of stable revenue, intense competition from professional player bed baths and other products, online giants Amazon and many private label brands will not generate easy revenue
In July, Aeropostale signed several licensing agreements in India and Indonesia to boost its Asian expansion.
It has reached an agreement with Arvind Lifestyle Brand Limited in India and PT Mitra Adiperkasa TBK in Indonesia to open licensee stores in both regions.
Aeropostale plans to open 50 independent stores and 150 stores in Indiain-
Store location and e-commerce
Business operations in the next five years.
For Indonesia, retailers plan to open 10-
There are 12 stores by 2020.
Aeropostale signed another similar agreement with Shuz 4u International Limited on November
Open shop in Ireland.
As its domestic business is at risk of bankruptcy, it is necessary for Aeropostale to expand in the international arena in order to spread risks geographically and generate additional income through expansion.
It also makes sense for the company to expand through a brand licensing transaction in which licensing partners take on most of the costs and the brand gets a steady income.
However, apart from India, Aeropostale cannot expect significant revenue from other markets due to its weak expansion plan and small market size.
Ireland is not the largest clothing market in Europe, and Aeropostale\'s partners have opened only 12 stores in the past five years.
In Indonesia, 10-
12 stores in five years have little impact on the company.
Even in India, competition from local and global players will not make it easy for airlines to earn revenue.
Conclusion in 2015 there was no respite for Aeropostale as it reported double-digit comparable declines in sales for all three quarters.
The company\'s revival efforts are reported to have little substance and its management is in trouble.
Investors have little confidence in the company, which is why its market value has plunged to $22 million.
For a strategic or financial buyer, this seems to be the right time to acquire the company at a small premium.
But the question is-will there be a significant return on investment?
Aeropostale has only $40 million in cash, its store is leased and the main assets it has are stock of goods and equipment.
Its brand is no longer popular and the growth area is not optimistic, so it is not the best investment on the surface.
However, the buyer may readjust the management structure to provide some impetus to the company. S.
The expansion from Aeropostale could turn the company into a children\'s clothing brand.
In this case, the buyer can get something from Aeropostale, but this is not the case without a significant investment.
View research on interactive institutions (
Powered by Trefis)
: Global hat | United StatesS.
Like our chart, more Trefis research?
Embed them into your own posts using the Trefis WordPress plugin.
The clothing industry after the recession.
The retailer has struggled for stability since 2015 and is worse at the end of the year.
Its shares have fallen more than 90% over the past year and are trading at a historic low of $0. 26.
Unless Aeropostale adopts a reverse stock split to resume compliance with the New York stock exchange regulations, it may not stay in the public market for a long time.
However, this is not enough because the speed at which retailers burn money is worrying and it seems that there is still a long way to go before making profits.
To consolidate its bottom line, Aeropostale signed a brand licensing agreement for the sale of home textiles in October and signed a clothing licensing agreement for Ireland in November.
Earlier this year, the retailer also signed a similar license agreement in India and Indonesia, indicating the US struggle. S.
Bring the company to the unknown.
While exploring the licensing space seems to be an effective initiative, these transactions are not sufficient to address the core issues of Aeropostale, given that the costs involved will be minimal.
Our estimate for Aeroposatle is $2.
22, this means that the current market prices rose sharply.
However, we are updating our estimates.
On September, Aeropostale announced that it had received a listing compliance notice from the New York Stock Exchange, which required companies participating in the transaction to maintain a stock price of at least $1 to continue listing on the exchange.
The company said it was considering a reverse stock split in order to restore compliance.
While the reverse stock split does not help increase shareholder returns, it can ensure that retailers remain on the big board.
Due to its continued low performance and a clear disagreement between the top leadership, the company is unlikely to share any positive news in terms of operations.
So there seems to be very few triggers that can boost demand for its shares in the short term.
At this point, the reverse stock split seems to be the only way out, which basically means reducing the number of tradable shares.
Because if Aeropostale is delisted, it will be another curve of its downward spiral.
The company has already undertaken a significant amount of debt and contractual lease obligations.
However, there has been no update on this so far, indicating that management is hesitant.
On October, Aeropostale signed a brand licensing agreement with Himatsingka America to sell home textiles under its brand name.
Under these terms, Himatsingka will design and manufacture home textile products such as bedding and bath towels under the brand name of Aeropostale and distribute them to various wholesale channels and large boxes throughout North America
The first batch of Aeropostale home series is expected to land in the store in the backgroundto-
The school year next year.
The retailer believes it has enough brand awareness in the US. S.
Attract a wider range of customers with products other than casual clothing.
However, Aeropostale\'s name is no longer relevant to quality, which may give customers doubts about its branded home textile products.
While retailers expect the deal to be a new source of stable revenue, intense competition from professional player bed baths and other products, online giants Amazon and many private label brands will not generate easy revenue
In July, Aeropostale signed several licensing agreements in India and Indonesia to boost its Asian expansion.
It has reached an agreement with Arvind Lifestyle Brand Limited in India and PT Mitra Adiperkasa TBK in Indonesia to open licensee stores in both regions.
Aeropostale plans to open 50 independent stores and 150 stores in Indiain-
Store location and e-commerce
Business operations in the next five years.
For Indonesia, retailers plan to open 10-
There are 12 stores by 2020.
Aeropostale signed another similar agreement with Shuz 4u International Limited on November
Open shop in Ireland.
As its domestic business is at risk of bankruptcy, it is necessary for Aeropostale to expand in the international arena in order to spread risks geographically and generate additional income through expansion.
It also makes sense for the company to expand through a brand licensing transaction in which licensing partners take on most of the costs and the brand gets a steady income.
However, apart from India, Aeropostale cannot expect significant revenue from other markets due to its weak expansion plan and small market size.
Ireland is not the largest clothing market in Europe, and Aeropostale\'s partners have opened only 12 stores in the past five years.
In Indonesia, 10-
12 stores in five years have little impact on the company.
Even in India, competition from local and global players will not make it easy for airlines to earn revenue.
Conclusion in 2015 there was no respite for Aeropostale as it reported double-digit comparable declines in sales for all three quarters.
The company\'s revival efforts are reported to have little substance and its management is in trouble.
Investors have little confidence in the company, which is why its market value has plunged to $22 million.
For a strategic or financial buyer, this seems to be the right time to acquire the company at a small premium.
But the question is-will there be a significant return on investment?
Aeropostale has only $40 million in cash, its store is leased and the main assets it has are stock of goods and equipment.
Its brand is no longer popular and the growth area is not optimistic, so it is not the best investment on the surface.
However, the buyer may readjust the management structure to provide some impetus to the company. S.
The expansion from Aeropostale could turn the company into a children\'s clothing brand.
In this case, the buyer can get something from Aeropostale, but this is not the case without a significant investment.
View research on interactive institutions (
Powered by Trefis)
: Global hat | United StatesS.
Like our chart, more Trefis research?
Embed them into your own posts using the Trefis WordPress plugin.
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