Aeropostale (NYSE:ARO) Will Miss Mead Says FBR

With sales down and EPS guidance for the fourth quarter lowered, Aeropostale, Inc. (NYSE:ARO) will miss co-CEO and chief merchant Mindy Meads, according to FBR Capital.

FBR said, "The co-CEO arrangement seemed awkward, but the departure of Mindy Meads (co-CEO and chief merchant) was unexpected nonetheless. In the past, management had credited her with changing the brand’s DNA from one based solely on value to one of value-priced fashion. On her watch, the company saw rapid expansion in its comps and margins. We believe Ms. Meads' contributions were significant and this is a loss for the organization. The company highlighted a bench of talented merchants who would step up and the chairman will also consult on product."

FBR Capital maintains an 'Underperform' rating on Aeropostale, which is getting hammered today, plunging to $23.18, falling $3.62, or 13.51 percent as of 2:42 PM EST. FBR has a price target on them of $20.