Aeropostale Reports Record Results for Fourth Quarter and Fiscal 2009
Fourth Quarter Earnings of $0.99 Per Diluted Share
Provides First Quarter and Full Year Fiscal 2010 Guidance
NEW YORK, March 11 /PRNewswire-FirstCall/ -- Aeropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of casual apparel for young women and men, today reported results for the fourth quarter and fiscal 2009, and provided guidance for the first quarter and full year fiscal 2010. All references to earnings per share have been adjusted for the 3 for 2 common stock split that was effective on March 5, 2010.
Fourth Quarter Performance
Diluted net earnings for the fourth quarter of fiscal 2009 increased 48% to a record $0.99 per share, compared to net earnings of $0.67 per share in the fourth quarter of fiscal 2008. Net income for the fourth quarter of fiscal 2009 increased 42% to $96.6 million, compared to net income of $68.2 million in the fourth quarter of fiscal 2008.
Total net sales for the fourth quarter of fiscal 2009 increased 16% to $801.2 million, from $690.0 million in the year ago period. Same store sales for the fourth quarter increased 9%, compared to a same store sales increase of 6% last year.
Co-Chief Executive Officers Mindy C. Meads and Thomas P. Johnson, said, "We are very pleased with our strong performance for both the fourth quarter and full year. We continued to build upon our brand momentum and experienced record breaking periods for Aeropostale. These results were achieved through the power of our nimble and flexible operating model, combined with the hard work of our entire organization."
Full Fiscal Year Performance
Diluted net earnings for fiscal 2009 increased 54% to a record $2.27 per share, compared to net earnings of $1.47 per share in fiscal 2008. Net income for fiscal 2009 increased 54% to $229.5 million, compared to net income of $149.4 million in fiscal 2008.
Total net sales for fiscal 2009 increased 18% to $2.230 billion, from $1.886 billion in the year ago period. Same store sales for fiscal 2009 increased 10%, compared to a same store sales increase of 8% last year.
First Quarter and Full Year 2010 Guidance
For the first quarter of fiscal 2010 the Company expects earnings in the range of $0.39 to $0.40 per share, an increase of 26%-29% compared to earnings of $0.31 per share for the first quarter of 2009. For the full year, the Company expects net earnings per share growth of approximately 15%.
Co-Chief Executive Officers Mindy C. Meads and Thomas P. Johnson, commented, "We are very excited about our strong start to the new fiscal year. Our spring merchandise assortment is resonating with our customers and we are well positioned to building upon our successes for the remainder of the year. In the coming year we look forward to growing both Aeropostale and P.S. from Aeropostale, maximizing our real estate opportunities, and investing in technology and in our infrastructure. We are very proud of the accomplishments we have made in our business, and we look forward to achieving another record year in fiscal 2010."
E-commerce
Total net sales from the Company's e-commerce business for the fourth quarter of fiscal 2009 increased 42% to $63.9 million, from $45.0 million in the year ago period. Total net sales from the Company's e-commerce business for fiscal 2009 increased 48% to $129.0 million, from $87.1 million in the year ago period.
Strong Cash Positioning
The Company ended fiscal 2009 with cash and cash equivalents of $347.0 million, compared to $228.5 million last year, and had no debt outstanding.
Store Growth and Capital Spending
The Company plans approximately $80.0 million in capital expenditures 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 $54.0 million in fiscal 2009.
Conference Call Information
The Company will be holding a conference call today at 4:15 P.M. ET to review its fourth 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.
About Aeropostale, Inc.
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™ 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™ products can be purchased in P.S. from Aeropostale™ stores and online at www.ps4u.com. The Company currently operates 895 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 OR CIRCUMSTANCES.
EXHIBIT A
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
January 30, January 31,
2010 2009
----------- -----------
ASSETS
Current Assets:
Cash and cash equivalents $346,976 $228,530
Merchandise inventory 132,915 126,360
Other current assets 40,900 38,991
------ ------
Total current assets 520,791 393,881
Fixtures, equipment and improvements, net 251,558 248,999
Other assets 19,960 15,039
------ ------
TOTAL ASSETS $792,309 $657,919
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $90,850 $77,247
Accrued expenses 150,990 98,190
------- ------
Total current liabilities 241,840 175,437
Other non-current liabilities 115,980 127,422
Stockholders' equity 434,489 355,060
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $792,309 $657,919
======== ========
EXHIBIT B
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SELECTED STORE DATA
(in thousands, except per share and store data)
13 weeks ended
--------------
January 30, 2010 January 31, 2009
---------------- ----------------
% of sales % of sales
---------- ----------
Net sales $801,223 100.0% $690,017 100.0%
Cost of sales
(including certain
buying, occupancy and
warehousing expenses) 490,575 61.2 446,500 64.7
------- ---- ------- ----
Gross profit 310,648 38.8 243,517 35.3
Selling, general and
administrative
expenses 151,498 18.9 130,055 18.8
------- ---- ------- ----
Income from operations 159,150 19.9 113,462 16.5
Interest expense, net 32 0.0 20 0.0
--- --- --- ---
Income before income taxes 159,118 19.9 113,442 16.5
Income taxes 62,554 7.8 45,217 6.6
------ --- ------ ---
Net income $96,564 12.1% $68,225 9.9%
======= ==== ======= ===
Basic earnings per share $1.00 $0.68
===== =====
Diluted earnings per share $0.99 $0.67
===== =====
Weighted average basic
shares 96,467 100,233
Weighted average
diluted shares 97,982 101,160
STORE DATA:
Comparable store sales
increase 9% 6%
Stores open at end of period 952 914
Total square footage at
end of period 3,428,376 3,284,614
Average square footage
during period 3,431,716 3,296,466
Note:
All share and per share amounts were given retroactive recognition
to the three-for-two common stock split that was effective on
March 5, 2010.
EXHIBIT C
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SELECTED STORE DATA
(in thousands, except per share and store data)
52 weeks ended
--------------
January 30, 2010 January 31, 2009
---------------- ----------------
% of sales % of sales
---------- ----------
Net sales $2,230,105 100.0% $1,885,531 100.0%
Cost of sales
(including certain
buying, occupancy
and warehousing
expenses) 1,382,958 62.0 1,231,349 65.3
--------- ---- --------- ----
Gross profit 847,147 38.0 654,182 34.7
Selling, general and
administrative
expenses 464,462 20.8 405,883 21.5
------- ---- ------- ----
Income from
operations 382,685 17.2 248,299 13.2
Interest income, net 121 0.0 510 0.0
--- --- --- ---
Income before income
taxes 382,806 17.2 248,809 13.2
Income taxes 153,349 6.9 99,387 5.3
------- --- ------ ---
Net income $229,457 10.3% $149,422 7.9%
======== ==== ======== ===
Basic earnings per
share $2.30 $1.49
===== =====
Diluted earnings per
share $2.27 $1.47
===== =====
Weighted average
basic shares 99,629 100,248
Weighted average
diluted shares 101,025 101,364
STORE DATA:
Comparable store
sales increase 10% 8%
Average square
footage during
period 3,358,199 3,139,515
Note:
All share and per share amounts were given retroactive recognition
to the three-for-two common stock split that was effective on
March 5, 2010.
Company Contact: |
|
Kenneth Ohashi/VP, Investor & Media Relations |
|
(646) 452-1876 or [email protected] |
|
Media Contact: |
|
Leigh Parrish/Diane Zappas, FD |
|
(212) 850-5600 |
|
SOURCE Aeropostale, Inc.
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