Aeropostale To Cut 100 Jobs, Close 125 Mall-based P.S.

(RTTNews) - Aeropostale, Inc. (ARO) on Wednesday provided an update on its strategic initiatives and announced a comprehensive cost reduction program as part of the company's on-going turnaround plans.

Based on changing consumer patterns, particularly of the "mom" shopper, the company has decided to close about 125 mall-based P.S. from Aeropostale stores by the end of fiscal 2014.

The company said it plans to reduce corporate headcount by about 100 positions to align with current business strategies, in addition to the workforce reductions from the company's on-going store closure program.

The company estimates that it will record pre-tax restructuring, asset impairment, and other charges of $40 million to $65 million during fiscal 2014 related to those actions, of which $25 million to $40 million are estimated to be cash expenses.

Following a strategic business review, the company said it has identified key initiatives it estimates will generate $30 million to $35 million in annualized pre-tax savings, of which $5 million to $10 million is expected to be achieved in fiscal 2014.

The company said it continues to expect first quarter 2014 operating losses in the range of $64 million to $68 million, which translates to a net loss in the range of $0.70 to $0.75 per share.