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Aeropostale Reports Record Third Quarter 2009 and November Sales Results
NEW YORK, Dec. 2 /PRNewswire-FirstCall/ -- Aeropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of active and casual apparel for young women and men, today reported results for the third quarter ended October 31, 2009 and total net sales for the four-week period ended November 28, 2009.
Third Quarter Results
Diluted earnings per share for the third quarter of fiscal 2009 increased 46% to a record $0.92 per diluted share, compared to net earnings of $0.63 per share in the third quarter of fiscal 2008. Net income for the third quarter increased 47% to a record $62.6 million, compared to net income of $42.6 million in the same period last year.
For the third quarter of fiscal 2009, total net sales increased 18% to $567.8 million, from $482.0 million in the year-ago period. Same store sales for the third quarter increased 10%, compared to an increase of 7% in the year-ago period.
Julian R. Geiger, Chairman and Chief Executive Officer said, "We are thrilled with our record breaking performance for the third quarter. Results such as these underscore the strength of the Aeropostale brand, as well as the nimble and flexible nature of our business model. We know our customers well, and we continue to offer them a fresh, focused and balanced merchandise assortment at compelling values."
November Sales Results
Total net sales for the four-week period ended November 28, 2009 increased 14% to $228.0 million, from $200.9 million for the four-week period ended November 29, 2008. The Company's same store sales increased 7% for the month, compared to a same store sales decrease of 5% in the year ago period. The Company noted that its gross margins for the month increased over last year, and its inventories remain well controlled and on plan.
Year to date total net sales have increased 19% to $1.657 billion, from $1.396 billion in the year ago period. Year to date same store sales increased 10%, compared to 7% same store sales last year.
Fourth Quarter Guidance
The Company announced its earnings guidance for the fourth quarter of fiscal 2009. The Company expects earnings in the range of $1.20 to $1.24 per diluted share for the fourth quarter.
The Company achieved diluted earnings per share of $1.01 in the fourth quarter last year.
Mr. Geiger concluded, "We are very pleased with our strong start to the holiday selling season. Our same store sales for the Friday and Saturday following Thanksgiving Day increased 10% and our gross margins increased over last year. The reaction to our holiday merchandise assortment has been positive and we remain focused on executing our strategies for the fourth quarter and beyond."
Store Growth and Capital Spending
The Company plans to invest approximately $70 million in capital for fiscal 2010 to open approximately 25 Aeropostale stores, approximately 25-30 P.S. from Aeropostale stores, and approximately 40 store remodels, in addition to certain information technology investments. This compares to capital expenditures of approximately $50 million in fiscal 2009.
Conference Call Information
The Company will be holding a conference call today at 4:15 P.M. EDT to review its third quarter results. The broadcast will be available through the 'Investor Relations' link at www.aeropostale.com and www.fulldisclosure.com To listen to the broadcast your computer must have Windows Media Player installed. If you do not have Windows Media Player go to the latter site prior to the call, where you can download the software for free.
Aeropostale, Inc. is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale® stores and 7 to 12 year-old kids through its P.S. from Aeropostale(TM) stores. The Company provides customers with a focused selection of high-quality, active-oriented, fashion and fashion basic merchandise at compelling values. Aeropostale® maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. Aeropostale® products can only be purchased in its Aeropostale stores and online at www.aeropostale.com. P.S. from Aeropostale(TM) products can be purchased in P.S. from Aeropostale(TM) stores and online at www.ps4u.com. The Company currently operates 896 Aeropostale stores in 49 states and Puerto Rico, 44 Aeropostale stores in Canada and 14 P.S. from Aeropostale stores in five states.
SPECIAL NOTE: THIS PRESS RELEASE AND ORAL STATEMENTS MADE FROM TIME TO TIME BY REPRESENTATIVES OF THE COMPANY CONTAIN CERTAIN "FORWARD-LOOKING STATEMENTS" CONCERNING EXPECTATIONS FOR SALES, STORE OPENINGS, GROSS MARGINS, EXPENSES, STRATEGIC DIRECTION AND EARNINGS. ACTUAL RESULTS MIGHT DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. AMONG THE FACTORS THAT COULD CAUSE ACTUAL RESULTS TO MATERIALLY DIFFER INCLUDE, CHANGES IN THE COMPETITIVE MARKETPLACE, INCLUDING THE INTRODUCTION OF NEW PRODUCTS OR PRICING CHANGES BY OUR COMPETITORS, CHANGES IN THE ECONOMY AND OTHER EVENTS LEADING TO A REDUCTION IN DISCRETIONARY CONSUMER SPENDING; SEASONALITY; RISKS ASSOCIATED WITH CHANGES IN SOCIAL, POLITICAL, ECONOMIC AND OTHER CONDITIONS AND THE POSSIBLE ADVERSE IMPACT OF CHANGES IN IMPORT RESTRICTIONS; RISKS ASSOCIATED WITH UNCERTAINTY RELATING TO THE COMPANY'S ABILITY TO IMPLEMENT ITS GROWTH STRATEGIES, AS WELL AS THE OTHER RISK FACTORS SET FORTH IN THE COMPANY'S FORM 10-K AND QUARTERLY REPORTS ON FORM 10-Q, FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS TO REFLECT SUBSEQUENT EVENTS
EXHIBIT A
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
October 31, January 31, November 1,
2009 2009 2008
----------- ----------- -----------
ASSETS
Current Assets:
Cash and cash equivalents $285,627 $228,530 $107,198
Merchandise inventory 221,516 126,360 206,857
Other current assets 43,236 38,991 45,824
------ ------ ------
Total current assets 550,379 393,881 359,879
Fixtures, equipment and
improvements, net 262,331 248,999 258,353
Other assets 16,128 15,039 20,236
------ ------ ------
TOTAL ASSETS $828,838 $657,919 $638,468
======== ======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Accounts payable $144,564 $77,247 $136,738
Accrued expenses 122,052 98,190 87,695
------- ------ ------
Total current liabilities 266,616 175,437 224,433
Other non- current liabilities 113,773 127,422 128,903
Stockholders' equity 448,449 355,060 285,132
------- ------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $828,838 $657,919 $638,468
======== ======== ========
EXHIBIT B
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(in thousands, except per share and store data)
13 weeks ended
--------------
October 31, 2009 November 1, 2008
---------------- ----------------
% of sales % of sales
---------- ----------
Net sales $567,838 100.0% $482,037 100.0%
Cost of sales (including
certain buying,
occupancy and
warehousing expenses) 344,921 60.7 308,586 64.0
------- ---- ------- ----
Gross profit 222,917 39.3 173,451 36.0
Selling, general and
administrative expenses 117,236 20.6 103,084 21.4
------- ---- ------- ----
Income from operations 105,681 18.7 70,367 14.6
Interest income, net 27 0.0 210 0.0
--- --- --- ---
Income before income
taxes 105,708 18.7 70,577 14.6
Income taxes 43,079 7.6 27,931 5.8
------ --- ------ ---
Net income $62,629 11.1% $42,646 8.8%
======= ==== ======= ===
Basic earnings per share $0.94 $0.64
===== =====
Diluted earnings per
share $0.92 $0.63
===== =====
Weighted average basic
shares 66,881 66,851
Weighted average diluted
shares 67,991 67,646
STORE DATA:
Comparable store sales
increase 10% 7%
Stores open at end of
period 945 905
Total square footage at
end of period 3,398,307 3,252,976
Average square footage
during period 3,380,722 3,206,340
EXHIBIT C
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(in thousands, except per share and store data)
39 weeks ended
--------------
October 31, 2009 November 2, 2008
---------------- ----------------
% of sales % of sales
---------- ----------
Net sales $1,428,882 100.0% $1,195,514 100.0%
Cost of sales
(including certain
buying, occupancy and
warehousing expenses) 892,383 62.5 784,849 65.6
------- ---- ------- ----
Gross profit 536,499 37.5 410,665 34.4
Selling, general and
administrative
expenses 312,964 21.9 275,828 23.1
------- ---- ------- ----
Income from operations 223,535 15.6 134,837 11.3
Interest income, net 153 0.0 530 0.0
--- --- --- ---
Income before income
taxes 223,688 15.6 135,367 11.3
Income taxes 90,795 6.4 54,170 4.5
------ --- ------ ---
Net income $132,893 9.2% $81,197 6.8%
======== === ======= ===
Basic earnings per
share $1.98 $1.21
===== =====
Diluted earnings per
share $1.95 $1.20
===== =====
Weighted average basic
shares 67,122 66,835
Weighted average
diluted shares 68,026 67,556
STORE DATA:
Comparable store sales
increase 11% 9%
Average square footage
during period 3,333,693 3,087,199
Company Contact: ---------------- Kenneth Ohashi/VP, Investor & Media Relations (646) 452-1876 or kohashi@aeropostale.com Media Contact: -------------- Leigh Parrish/Diane Zappas, Financial Dynamics (212) 850-5600
SOURCE Aeropostale, Inc.
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