Our Nomination for Worst CEO in Specialty Apparel is…

Thomas P. Johnson of Aeropostale (ARO – $13.37) wins in a landslide.

How Mr. Johnson remains at the helm of ARO escapes us. Since his taking over complete control of the CEO role in December 2010, the top-line and bottom-line have continued to achieve dramatically lower lows (see trailing 4-quarter profitability chart below). It appears that ARO’s EBIT margin will now dip below 4.0% in FY 2012.

Mr. Johnson’s poor performance is actually even worse when considering that he is not burdened by the large box size that makes the achievement of a double-digit operating margin at peers AEO, ANF, and GPS much more difficult to achieve. In other words, ARO has an inherent operating margin advantage over its peer group via its relatively smaller store footprint.

But, that’s exactly why today’s dismal holiday 2012 comp sales announcement provides a glimmer of hope. The core chain’s smaller store footprint will allow a savvier merchant/CEO an opportunity to turn the ship around in much quicker fashion than ARO’s bigger-box peers.

While there is a much greater opportunity for a quick turnaround at ARO, that can only happen if the company’s Board of Directors wakes up and sends Mr. Johnson on his way. But, today investors in ARO are likely one step closer to Mr. Johnson’s exit and that may be reason enough to stick around.