Aeropostale announced today that its CEO Thomas Johnson will leave the company. Julian Geiger, who previously served as the company’s CEO, will re-join the company in the same capacity.
Johnson was named the clothing chain’s sole CEO on December 1, 2010, and since that date, Aeropostale shares have fallen more than 85% from around $US25 per share to $US3.24 as of Monday’s close.
Aeropostale also said Monday that in the second quarter, sales fell 13% to $US396.2 million from $US454 million, and the company expects to lose $US0.80 to $US0.83 pe share in the quarter. Excluding certain items, losses are expected to be $US0.42 to $US0.45 in the second quarter.
And in after hours trade Monday, investors were shaking off the poor results and cheering a new presence at the top of the company, with shares up more than 7%.
But it’s not just the stock price that paints a picture of how awful Johnson’s tenure as CEO really was.
On Twitter, Rob Wilson, president of Tiburon Research Group, tweeted a chart showing operating margins for Aeropostale since Johnson was named CEO.
At the time Johnson took the helm at Aeropostale, margins were running at about 16%. As of the second quarter of this year, those margins had fallen to -8%.
As Wilson said on Twitter, “Possibly the absolute worst tenure in specialty apparel retail history comes to an end at [Aeropostale].”
Here’s Wilson’s chart, which shows the staggering decline in margins at Aeropostale over the last four years.
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