| Company: | Aeropostale, Inc. |
| Ticker Symbol: | ARO |
| Class Period: | Feb-3-11 to Aug-3-11 |
| Date Filed: | Oct-11-11 |
| Lead Plaintiff Deadline: | Dec-10-11 |
| Court: | Southern District of New York |
| Allegations: | |
The complaint charges that Aeropostale and certain of its officers and directors violated federal securities laws by issuing materially false statements regarding the Company's business and prospects. Specifically, defendants failed to disclose the following adverse facts: (i) that Aeropostale was experiencing declining demand for its women's fashion division, which makes up 70% of the Company's sales; (ii) that Aeropostale was enduring pressure on its profit margins as a result of increasing inventory and higher discounts on its clothing; and (iii) that, as a result, defendants lacked a reasonable basis for their positive statements about the Company.
On August 4, 2011, Aeropostale provided a business update for the second quarter of 2011 reporting net sales of $468.2 million, a decrease of 5% from the second quarter of 2010, and expected net earnings to be in the range of $0.02 to $0.03 per share -- well below the Company's guidance of $0.11 to $0.16 per share. On this news, Aeropostale stock fell $3.99, or 24%, to close at $12.53 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
