Aeropostale made it to the news on Thursday after it reported its fifth straight quarterly loss and said it entered into a deal with private equity firm Sycamore Partners for a 5 percent stake. On the wake of the news, Aeropostale shares fell 13 percent in extended trading on Thursday.
As per the deal with the private equity firm, Sycamore will provide a 150 million dollars loan to Aeropostale and in exchange, it will have the right to acquire up to 5 percent of its shares at 7.25 dollars, the stock's closing price on the New York Stock Exchange on Wednesday, Aeropostale said.
Aeropostale shares fell to 6.43 dollars late yesterday after the earnings report was released. They already had dropped 20 percent this year through the close of New York trading, compared with a decline of less than 1 percent for the Standard & Poor's 500 Index, reported Bloomberg.
Elsewhere, something similar happened to Tod's, which shares dropped more than 4 percent after the company's 2013 results missed market expectations. The Italian luxury shoes manufacturer said after the market closed that net profit fell 8 percent to 134 million euros last year, against a Thomson Reuters SmartEstimate of 139 million euros, and said like-for-like sales fell at the beginning of 2014.
On a positive note, Hugo Boss on Thursday said it expected 2014 sales and earnings to rise by a high single-digit percentage at constant currencies. Analysts polled by Reuters on average saw 2014 sales up 9.2 percent at 2.65 billion euros and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 625 million euros, up by 10.6 percent.