Troubled retailer Aeropostale sinks to 11-year low

Aeropostale shares touched an 11-year low early Friday after the teen apparel retailer posted lower-than-expected holiday season earnings and said early 2014 prospects were bleak and announced plans to shutter more than 50 stores.

The stock was off 13% to $6.36 in mid-day trading on nearly five times normal trading volume. Earlier, shares fell as low as $5.99.

Late Thursday, the chain posted a wider-than-expected fourth-quarter loss of 35 cents a share. The company also expects losses in the first quarter - its sixth-straight.

Aeropostale operates about 980 mostly mall-based stores in the U.S. and Canada. Catering to fickle teens, a market in which it competes with Forever 21, H&M and Abercrombie & Fitch, has proven increasingly difficult. Fourth-quarter sales were off 16% and down 12% for the year.

"The results we generated in 2013 are not acceptable nor are they a reflection of the progress we believe we have made in transforming our brand,'' said CEO Thomas Johnson. "Having evaluated what we set out to do in 2013 and what we learned, we believe our strategy surrounding product, brand projection, process and growth is even more crucial to winning in today's challenging retail landscape."

The company has been exploring options, such as going private. Meanwhile, private equity firm Sycamore Partners is providing $150 million in additional capital and boosting its Aeropostale stake to about 12%.

Aeropostale is the latest retailer to shrink in an ever-changing shopping environment. Abercrombie & Fitch, Radio Shack and Staples, among others, recently announced store closures. Johnson said the company would explore accelerating closure of 50 Aeropostale stores and two P.S. outlets.

Aeropostale shares have been on a mostly downhill course since peaking at about $32.25 in April 2010.

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