Aeropostale cutting jobs as teen retailer's sales slump
NEW YORK (AP) - Teen retailer Aeropostale says it's cutting costs and jobs amid a yearslong sales slump.
The New York company said Tuesday it expects to cut expenses by $35 million to $40 million a year starting in fiscal 2016 and will slash its corporate staff by 13 percent, or 100 jobs, by the end of January.
CEO Julian Geiger is also giving back 1 million stock options so Aeropostale can give them to other employees in an effort to keep them with the company.
"Fast fashion" outfits like H&M and Forever 21 have become more popular with teens than stores like Aeropostale, Abercrombie & Fitch and American Eagle Outfitters.
Aeropostale's shares have lost 92 percent of their value in the past 12 months and the stock hasn't touched above $1 since September.