Aeropostale rehired its former CEO following the company's poor performance in the market and sagging profits.

In a statement released by the company, it said that Thomas Johnson will be immediately replaced by former CEO Julian Geiger.

The reinstatement of Geiger as the CEO is the company's response regarding its dropping sales.

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During Aeropostale's second quarter sales, the company reported a drop of 13 percent to US$396.2 million.

Aeropostale stock increased by 8% to $3.49 during after-hours trading.

In a statement released by Karin Hirtler-Garvey, Chairperson of Aeropostale's Board of Directors, he said Geiger's track record in the company has made him the best suited candidate for the position.

"Julian was the leader of Aeropostale strategic direction during a period of significant growth, and we are confident in his understanding of today's teen retail marketplace and his intuition regarding teen fashion," Hirtler-Garvey said.

The company also revealed their expected loss in operations to be about US$61-$64 million, which marked the company's seventh consecutive quarter of losses.  

Aside from being the CEO, Geiger will also serve as a member of the company's Board of Directors.

Geiger was the company's CEO since August of 1998 until February 2010. Until 2012, he served as the chairman of the company's Board of Directors.

Johnson, on the other hand, who has been the CEO of Aeropostale since December 2010, has agreed to step down as the CEO and the company's director.

According to company reports, Johnson's employment contract stipulated a salary package worth about US$13.8 million in 2013, which is 200 percent more than his 2012 compensation.

Aeropostale has 923 stores operating in the United States, Canada and Puerto Rico, in addition to 148 P.S. from Aeropostale stores.

Tagsaeropostale, retailer, company loss