Aeropostale Reports Record Second Quarter 2009 ResultsSecond Quarter Net Sales Increase 20%; Same Store Sales Increase 12%Earnings Per Share Growth of 84% to $0.57 Per Diluted ShareProvides Third Quarter Guidance

PRWeb

August 20, 2009 4:10pm Comments

NEW YOR K, Aug. 20 /PRNewswire-FirstCall/ -- Aeropostale, Inc. (NYSE: A RO), a mall-based specialty retailer of casual apparel for young women and men, today reported results for the second quarter ended August 1, 2009.

Net income for the second quarter of fiscal 2009 was $38.6 million, or $0.57 per diluted share, compared to net income of $21.1 million, or $0.31 per diluted share, in the second quarter of fiscal 2008. Results for the second quarter include pre-tax charges of approximately $0.6 million related to the closing of the Company's Jimmy'Z concept.

For the second quarter of fiscal 2009, total net sales increased 20% to $453.0 million, from $377.1 million in the year ago period. Same store sales for the second quarter increased 12%, compared to a same store sales increase of 11% last year. Year to date, total net sales have increased 21% to $861.0 million, from $713.5 million in the year ago period. Year to date, same store sales have increased 11%, compared to a same store sales increase of 10% last year.

Total net revenue from the Company's e-commerce business for the second quarter of fiscal 2009 increased 49% to $15.8 million, from $10.6 million for the second quarter of fiscal 2008.

Julian R. Geiger, Chairman and Chief Executive Officer, said, "We are extremely pleased with our results for the second quarter. We continue to create strong brand momentum by striking the right balance between fashion and value. Our initial reads on our back to school merchandise have been positive and we believe that we are well positioned as we head into the second half of the year. We remain focused on executing our strategic initiatives and investing in our business to support long-term growth."

Third Quarter Guidance:

The Company announced its earnings guidance for the third quarter of fiscal 2009. The Company believes it will achieve earnings in the range $0.76 to $0.78 per diluted share for the third quarter, compared to earnings of $0.63 per share in the third quarter last year.

Conference Call Information

The Company will be holding a conference call today at 4:15 P.M. EDT to review its second 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(R) 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(R) maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. Aeropostale(R) 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 887 Aeropostale stores in 49 states and Puerto Rico, 37 Aeropostale stores in Canada and 7 P.S. from Aeropostale stores in 3 states.

SPECIAL NOTE: THIS PRES S RELEASE AND ORAL STATEMENTS MADE FROM TIME TO TIME BY REPRESENTATIVES OF THE COMPANY CONTAIN CERTAIN "FORWARD-LOOK ING STATEMENTS" CONCERNING EXPECTATIONS FOR SALES, S TO RE OPENINGS, GROS S MARGIN S, EXPENSES, STRATEGIC DIRECTION AND EARNINGS. ACTUAL RESULTS MIGHT DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOK ING STATEMENTS. AMONG THE FACTO R S THAT COULD CAUSE ACTUAL RESULTS TO MATERIALLY DIFFER INCLUDE, CHANGES IN THE COMPETITIVE MAR KETPLACE, INCLUDING THE INTRODUCTION OF NEW PRODUCTS OR PRICING CHANGES BY OUR COMPETITO R S, CHANGES IN THE ECONOMY AND OTHER EVENTS LEADING TO A REDUCTION IN DISCRETIONARY CONSUMER SPENDING; SEASONALITY; RIS K S AS SOCIATED WITH CHANGES IN SOCIAL, POLITICAL, ECONOMIC AND OTHER CONDITIONS AND THE POS SIBLE ADVER SE IMPACT OF CHANGES IN IMPORT RESTRICTIONS; RIS K S AS SOCIATED WITH UNCERTAINTY RELATING TO THE COMPANY'S ABILITY TO IMPLEMENT ITS GROWTH STRATEGIES, AS WELL AS THE OTHER RIS K FACTO R S SET FORTH IN THE COMPANY'S FORM 10-K AND QUARTERLY REPORTS ON FORM 10-Q, FILED WITH THE SECURITIES AND EXCHANGE COMMIS SION. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOK ING STATEMENTS TO REFLECT SUBSEQUENT EVENTS OR CIRCUMSTANCES.

EXHIBIT A AEROPOSTALE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) August 1, January 31, August 2, 2009 2009 2008 -------- ---------- -------- AS SETS Current Assets: Cash and cash equivalents $245,454 $228,530 $70,792 Merchandise inventory 200,993 126,360 183,710 Other current assets 44,366 38,991 43,614 ------ ------ ------ Total current assets 490,813 393,881 298,116 Fixtures, equipment and improvements, net 256,978 248,999 249,826 Other assets 14,886 15,039 18,377 ------ ------ ------ TOTAL AS SETS $762,677 $657,919 $566,319 ======== ======== ======== LIABILITIES AND S TOCKHOLDER S' EQUITY Current Liabilities: Accounts payable $125,009 $77,247 $125,271 Accrued expenses 82,020 98,190 69,838 ------ ------ ------ Total current liabilities 207,029 175,437 195,109 Other non-current liabilities 126,072 127,422 126,696 Stockholders' equity 429,576 355,060 244,514 ------- ------- ------- TOTAL LIABILITIES AND S TOCKHOLDER S' EQUITY $762,677 $657,919 $566,319 ======== ======== ======== EXHIBIT B AEROPOSTALE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SELECTED S TO RE DATA (in thousands, except per share and store data) 13 weeks ended -------------- August 1, 2009 August 2, 2008 --------------- --------------- % of % of sales sales ----- ----- Net sales $453,020 100.0% $377,145 100.0% Cost of sales (including certain buying, occupancy and warehousing expenses) 287,328 63.4 251,209 66.6 ------- ---- ------- ---- Gross profit 165,692 36.6 125,936 33.4 Selling, general and administrative expenses 101,282 22.4 90,654 24.0 ------- ---- ------ ---- Income from operations 64,410 14.2 35,282 9.4 Interest income, net 171 0.0 80 0.0 --- --- -- --- Income before income taxes 64,581 14.2 35,362 9.4 Income taxes 25,992 5.7 14,309 3.8 ------ --- ------ --- Net income $38,589 8.5% $21,053 5.6% ======= ==== ======= === Basic earnings per share $0.57 $0.31 ===== ===== Diluted earnings per share $0.57 $0.31 ===== ===== Weighted average basic shares 67,386 66,905 Weighted average diluted shares 68,297 67,716 S TO RE DATA: Comparable store sales increase 12% 11% Stores open at end of period 927 879 Total square footage at end of period 3,337,845 3,139,274 Average square footage during period 3,331,902 3,086,083 EXHIBIT C AEROPOSTALE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SELECTED S TO RE DATA (in thousands, except per share and store data) 26 weeks ended -------------- August 1, 2009 August 2, 2008 -------------- -------------- % of % of sales sales ----- ----- $861,044 100.0% $713,477 100.0% Net sales Cost of sales (including certain buying, occupancy and warehousing expenses) 547,462 63.6 476,263 66.8 ------- ---- ------- ---- Gross profit 313,582 36.4 237,214 33.2 Selling, general and administrative expenses 195,728 22.7 172,744 24.2 ------- ---- ------- ---- Income from operations 117,854 13.7 64,470 9.0 Interest income, net 126 0.0 320 0.0 --- --- --- --- Income before income taxes 117,980 13.7 64,790 9.0 Income taxes 47,716 5.5 26,239 3.6 ------ --- ------ --- Net income $70,264 8.2% $38,551 5.4% ======= === ======= === Basic earnings per share $1.04 $0.58 ===== ===== Diluted earnings per share $1.03 $0.57 ===== ===== Weighted average basic shares 67,242 66,827 Weighted average diluted shares 68,043 67,511 S TO RE DATA: Comparable store sales increase 11% 10% Average square footage during period 3,314,005 3,027,628 Company Contact: Kenneth Ohashi/VP, Investor & Media Relations (646) 452-1876 or kohashi@aeropostale.com Media Contact: Leigh Parrish/Diane Zappas, FD (212) 850-5600

SOURCE Aeropostale, Inc.

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Aeropostale Reports Record Second Quarter 2009 ResultsSecond Quarter Net Sales Increase 20%; Same Store Sales Increase 12%Earnings Per Share Growth of 84% to $0.57 Per Diluted ShareProvides Third Quarter Guidance