Ricky Sandler, Eminence Capital Think Aeropostale is a Buy

Ricky Sandler, Eminence Capital: Ricky Sandler’s Eminence Capital recently disclosed ownership of 4.2 million shares of Aeropostale Inc (NYSE:ARO), which shows an increase by 1.2 million shares, according to a filing with the Securities and Exchange Commission. The stake represents 5.4% of the company, and has a value of $39.2 million, at the current price of Aeropostale’s stock.

The net sales of Aeropostale declined by 6% in year-on-year terms, and amounted to $454 million last quarter, versus $485.3 million reported for the same period of last year. The company also declared a net loss of $33.7 million, which is equal to $0.43 per share. For the current quarter, Aeropostale forecasts a net loss of $0.21 to $0.26 per diluted share, in comparison to a profit of $0.31 reported for the third quarter of 2012.

Aside from Eminence Capital, some other hedge funds out of those we track also reported owning shares of Aeropostale in the latest round of 13F filings. Scopia Capital, managed by Matt Sirovich and Jeremy Mindich, disclosed ownership of more than 4.9 million shares, while Patrick Mccormack’s Tiger Consumer Management‘s stake contained 3.6 million shares at the end of last quarter. And the last but not the least is Pzena Investment Management, managed by Richard S. Pzena, which held some 2.2 million shares of Aeropostale.

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Disclosure: none